Investors in Enel’s Hybrid Bond Yanked Orders as Yield Cut (1)

Enel SpA lost a substantial amount of demand for its hybrid bond sale after it slashed the yield on offer, leaving no new issue premium.

Final orders for the Italian power company’s €900 million ($972 million) junior debt issue dropped to €1.75 billion from a high of €4.8 billion earlier, according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. Demand for the deal — Enel’s first since its junior debt was cut to junk by S&P in December — was still nearly double the amount offered.

The final ...