London, Nov 25 - French food group Danone has set final terms on a 1 billion euro ($1.3 billion), five-year bond, IFR said on Tuesday.
Final guidance on the bond, due to mature in February 2014, has been set at mid-swaps plus 285 basis points, revised from initial guidance at around 300, said IFR, a Thomson Reuters publication.
Books on the deal, which was mandated to Barclays, Calyon, HSBC and Natixis, closed in excess of 4 billion euros, said IFR.
Five-year credit default swaps on Danone widened by about 50 basis points to around 145 basis points, analysts at UniCredit (HVB) wrote in a note to investors.
They recommended buying the new bond, citing its wide spreads by comparison with another five-year issue on Tuesday, by Swedish utility Vattenfall at mid-swaps plus 230 basis points.
"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," they wrote.
They expected the company's ratings to be stable, despite a negative outlook earlier this month from Moody's Investors Service for Danone's A3 rating.
"Danone's debt reduction is so far even ahead of plan," with the contribution of more than 600 million euros from the recent sale of an energy-drink business, the analysts wrote.