Reliance Communications’ (RCOM) subsidiary - Global Cloud Xchange (GCX), has made successful debut in the international capital markets, pricing $350 million in 5 non-call 2 years Senior Secured Regulation S / Rule 144A Fixed Rate Notes maturing in 2019. The Notes are expected to settle on August 01, 2014. Deutsche Bank and Standard Chartered Bank acted as Joint Global Coordinators.
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. $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 US, 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.
Reliance Communications is India’s foremost and truly integrated telecommunications service provider. The company, with a customer base of about 150 million, including over 2.5 million individual overseas retail customers, ranks among the Top 4 Telecom companies in the world by number of customers in a single country.
| Company Name | CMP |
|---|---|
| Bharti Airtel | 1846.55 |
| Vodafone Idea | 9.62 |
| Indus Towers | 412.35 |
| Tata Communications | 1521.05 |
| Bharti Hexacom Ltd. | 1538.30 |
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