India’s Reliance Communications (RCom) has settled its US$300m five-and-a-half year senior secured notes offering.
The notes carry a coupon of 6.5%, mature in 2020 and will be listed on the Singapore Stock Exchange, the telco said in a notice to the…
India’s Reliance Communications (RCom) has settled its US$300m five-and-a-half year senior secured notes offering.
The notes carry a coupon of 6.5%, mature in 2020 and will be listed on the Singapore Stock Exchange, the telco said in a notice to the National Stock Exchange of India.
DBS and Standard Chartered were reportedly joint bookrunners for the transaction.
The company expects to use the proceeds to fund the US$173m upfront payment for spectrum acquired in the March auction, while the rest will be for capex.
RCom, India’s fourth-largest mobile operator, spent a total Rs43bn (US$693m) in the auction to renew expiring spectrum licences in four telecoms service areas and acquire additional airwaves.
Fitch has assigned the notes a final rating of BB, reflecting the telco’s higher leverage and weaker market position than average for telcos it rates in Asia.
However, the agency said it believes RCom will be able to reduce its leverage this year and next as a result of EBITDA expansion and selling non-core assets.
Fitch also noted management’s commitment to reducing the company’s US$6bn debt pile by monetising assets such as its subsea cable unit Global Cloud XChange, its pay-TV business and property.
