By Simon Crompton
The UK engineering company ignored a trend among high-yield investors to boycott deals where bondholders are denied equivalent guarantees to senior bank lenders. Investors have turned their backs on similar issues, including February offerings from Jefferson Smurfit and Calpine, both of which had to be cancelled.
Yet Invensys successfully placed £615 million ($1.1 billion) of bonds in March, one of the largest European deals without a US registration. Does this indicate that investors are losing sway? Probably not – Invensys paid heavily for its choice.
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