Comments
Reliance Communications is marketing a 5.5-year US dollar bond to yield around 6.5 per cent.
The Reg S-only senior secured notes come with a security package that includes tower assets and optic fibre cables, as well as certain telecommunications licences and a pledge over RComm's equity stake in Reliance Communications Infrastructure and all the shares held by the issuer and Reliance Infocomm Infrastructure in Reliance Telecom.
The notes also carry standard high-yield covenants, including a minimum fixed-charge coverage ratio of 2.25x.
RComm is returning to the international bond markets after pulling plans for a debut $255-million five-year non-call three Reg S offering in December, which was marketed to yield around 6.5 per cent. At the time, the bonds and the issuer were unrated.
This time around, RComm has ratings of Ba3 from Moody's and BB- from Fitch, both with stable outlooks. The notes are expected to be rated on par with the issuer.
DBS and Standard Chartered are joint book-runners.
RComm, part of the Anil Dhirubhai Ambani-owned Reliance Group, has operations in sectors such as infrastructure, power, financial services and entertainment.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.