Paccar Downsizes MXP Bond

Paccar Mexico has priced a smaller than planned MXP920m issue of 2011 bonds at 28-day TIIE plus 40bp. The Mexican unit of Paccar, a global manufacturer of trucks and commercial vehicles, was originally targeting MXP1bn-MXP1.5bn, but it was heard scaling back to keep pricing within 35bp-40bp guidance. The offer, rated AAA on a national scale, was 1.15x subscribed, according to a banker on it. The transaction is Paccar’s first long-term bond in Mexico after 3 years of issuing commercial paper, and the first installment from a MXP7bn shelf. Proceeds will go towards repaying MXP1.5bn in short-term debt due this year. The issuer is expected to return to the market soon for the remainder of funds needed. BBVA managed the sale.