South Korean ISP and fixed-line services provider SK Broadband has launched a US$300m bond issue.
The five-year notes, which carry a coupon of 2.875%, priced at 99.185 to yield 3.052%, equivalent to a spread of 170bps over Treasuries.
Barclays,…
South Korean ISP and fixed-line services provider SK Broadband has launched a US$300m bond issue.
The five-year notes, which carry a coupon of 2.875%, priced at 99.185 to yield 3.052%, equivalent to a spread of 170bps over Treasuries.
Barclays, Deutsche Bank and HSBC acted as lead managers.
Ratings agency Fitch assigned a BBB+ rating to the issue saying it reflects “strong operational and strategic ties between [SK Broadband and parent SK Telecom].”
SK Telecom is the country’s largest mobile operator and, according to Fitch, “SKB’s fixed-line service is of great importance to SKT’s market position, particularly with respect to its ability to compete with other integrated operators such as KT Corp and LG Uplus Corporation.”
Therefore, “Fitch believes that SKT is highly likely to provide financial assistance to SKB if required, in light of the importance of retaining access to the fixed-line network and reputational risk”.
In early 2008, SKT bought SKB, then known as Hanaro Telecom, in a US$1.15bn deal.
