Danone sets final terms on deal
26 November 2008 00:00 in Pharmacy Supplier News
Danone has said it has set final terms on a one billion euro (844 million pounds) five-year bond, according to the International Financing Review (IFR).
Set to mature in February 2014, the bond's final guidance has been set at mid-swaps plus 285 basis points.
This is a revision from initial direction of around 300, the review added.
Analysts at UniCredit told Reuters five-year credit default swaps on Danone widened by approximately 50 basis points.
They added: "We are comfortable with our overweight recommendation for ... [Danone] based on the low cyclicality of the industry, especially the Baby Nutrition segment, which is one of the less sensitive business lines."
UniCredit analysts went on to recommend buying the new bond, citing its wide spreads by comparison with another five year-issue.
Earlier this month, Danone said its financial position was "sound" after credit rating agency Moody's reported a slowdown in the French food group's cash flow.
The organisation added the deceleration could lengthen the amount of time Danone takes to repay its debt.
Danone's products include Activia, Volvic, Actimel, Evian and Shape.
In 1919, the first Danone yogurts were produced in Spain by Isaac Carasso, with lactic ferments from the Pasteur Institute.
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