Indian undersea cable operator Global Cloud Xchange (GCX) is looking to raise at least Rs15bn (US$249.4m) in an overseas bond offering for debt repayment.
Fitch gave the offering an expected BB+ rating and Moody’s a provisional B2.
Proceeds will be…
Indian undersea cable operator Global Cloud Xchange (GCX) is looking to raise at least Rs15bn (US$249.4m) in an overseas bond offering for debt repayment.
Fitch gave the offering an expected BB+ rating and Moody’s a provisional B2.
Proceeds will be used to repay US$250m that it owes to its immediate parent, Reliance Globalcom, itself a wholly-owned subsidiary of telecoms giant Reliance Communications (RCom), the ratings agencies said.
Globalcom will in turn use the money to reduce its outstanding debt, which is around US$417m.
GCX is in preliminary talks with investors and the final size of the issue has yet to be determined, according to the Economic Times citing a person familiar with the situation.
It was first suggested two months ago that Hong Kong-based backhaul operator Citic Telecom was close to buying into GCX. According to a source quoted in today’s report, a deal could be months away.
RCom last year dropped plans to sell Globalcom – first to Bahrain’s Batelco, and then to a consortium of private equity funds led by investment firm Samena Capita.
Unlike a Globalcom transaction, a GCX deal would not include the group’s voice telecoms division.
Global Cloud Xchange owns an undersea cable system spanning 68,700km, and claims to serve more than 2,100 enterprises, 200 carriers and 2.5 million retail customers across the globe.
As of the end of March, GCX has about US$912m in contracted revenue to be recognised in the next three years, according to Fitch.
