US food gum maker CP Kelco is to give the European high yield market a new issue. Investors and analysts reacted positively to the news that CP Kelco will be offering a yield of up to 12% on its €255m ($215m) bond sale. Lehman Brothers, which is managing the sale, has unveiled official price talk in the range of 11.75% to 12%. The bond sale is due to be completed on Friday. CP Kelco is a new company made up of the former food gums businesses of Hercules and US bio-tech group Monsanto. The bonds will help fund the buy-out of assets from Monsanto. Lehman (72%) and Hercules (28%) own the company.
