(Updates price guidance, adds comment from S&P)
LONDON, Nov 26 (Reuters) - Europe's biggest tyre maker Michelin plans to sell a 500 million euro 30-year subordinated bond on Wednesday, a lead manager for the deal said.
Orders for the bond exceeded 900 million euros on Wednesday morning, the banker said.
Price guidance for the bond, which will be callable after 10 years, was refined during the day to give an expected yield of 195 basis points over swaps, at the low end of the initial range of 190 to 210 basis points over mid-swaps.
"Allocations are almost done," a syndicate official said early on Wednesday afternoon. "We will price the transaction in the course of the afternoon."
SG CIB is the arranger and sole bookrunner on the bond, with HSBC acting as joint lead manager.
Credit rating agency Standard & Poor's has rated the Michelin issue BBB-, or the lowest investment-grade rating.
The agency said on Wednesday that the issuance of the notes would have no impact on the company's creditworthiness.
"Although the issue will help lengthen the group's average debt maturity, it will not materially affect the credit metrics that are commonly used by Standard & Poor's," S&P said in a statement.
Michelin's corporate credit rating is BBB+ with a negative outlook. The bond is rated two notches lower due to its deeply subordinated nature and the possibility that the issuer may defer coupon payments to bondholders, S&P has said.
Last week Michelin said it would buy 14.9 percent of leading Indian tyre maker Apollo Tyres Ltd. to gain a foothold in India's $2.2 billion-a-year tyre market.
(Additional reporting by Richard Barley)