GCX, a subsidiary of Reliance Communications, has announced its successful debut in the international capital markets, pricing US$350 million in 5 non-call 2 years Senior Secured Regulation S / Rule 144A Fixed.
The Notes were priced at 100% with a coupon and yield of 7%. The Notes will be rated B2 by Moody’s and BB+ by Fitch, and the company is rated B2 stable by Moody’s and B+ stable by Fitch. US$250 million of the proceeds will be used to refinance the Standard Chartered Bank Loan Facility entered into by Reliance Globalcom B.V., and the remaining proceeds will be used for capital expenditure and general corporate purposes.
The deal received an overwhelming response from the market, and was significantly oversubscribed. By geography, the new issue was allocated 22% to the U.S., 29% to Europe, and 49% to Asia. By investor type, the issue saw 78% go to fund managers, 13% to hedge funds, 6% to private banks, and 3% to other investors. The Notes are expected to settle on August 2014.
Deutsche Bank and Standard Chartered Bank acted as Joint Global Coordinators.
