Initial Price Thoughts

Securities - issuance - pricing.

(IPT).

In the context of securities issuance, initial price thoughts are tentative price indications released by arranging banks on behalf of an issuer, on which the arranging banks seek feedback from potential investors.

Commonly the final pricing is more favourable for the issuer, compared with the initial price thoughts, depending on the level of demand from the potential investors.

Initial price thoughts are sometimes known as initial price talk.

Robust demand for BAT's bond issue

"With robust demand from investors, and average over-subscription of 4.7x per tranche, BAT was able to tighten levels 25bps from Initial Price Thoughts across the curve, printing $5bn over 5, 7, 10, 20 and 30 year tenors."

ACT Deals of the Year Awards 2023: Bonds above £750m winner.

See also

• Arranger
• bp
• Investment bank
• Oversubscribed
• Price discovery
• Price formation
• Price talk
• Price whispers
• Pricing guidance
• Tightening
• Widening

Other resource

• ACT Deals of the Year Awards 2023: Bonds above £750m winner - BAT