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Global Cloud Xchange, the submarine cable subsidiary of Reliance Communications (RCom), has raised $350 million through bonds in the international markets.
The notes were priced at 100 per cent with a coupon and yield of 7 per cent. 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.
About $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,” RCom said in a statement.
By geography, the new issue was allocated 22 per cent in the the US, 29 per cent to Europe and 49 per cent to Asia. By investor type, the issue saw 78 per cent go to fund managers, 13 per cent to hedge funds, 6 per cent to private banks, and 3 per cent to other investors.
The notes are expected to settle on August 1, 2014.
Deutsche Bank and Standard Chartered Bank acted as joint global coordinators.
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