Korean satellite and telecoms operator KT Corp is planning to issue senior unsecured Samurai bonds worth Y30bn (US$340m).
Ratings agency Moody’s said the notes will include tenors of two, three and five years, with a coupon rate of less than 1% for…
Korean satellite and telecoms operator KT Corp is planning to issue senior unsecured Samurai bonds worth Y30bn (US$340m).
Ratings agency Moody’s said the notes will include tenors of two, three and five years, with a coupon rate of less than 1% for each bond.
KT was unable to comment before the press deadline.
According to Moody’s analyst Yoshio Takahashi, KT will likely use the proceeds to refinance an existing Y35bn bond that matures in January 2013. That bond, which carries a 1.58% coupon, accounts for more than a quarter of the company’s total standalone debt that matures in 2013.
“We expect KT to use the proceeds to refinance this existing Y35bn bond, and therefore, the issuance will have a largely neutral impact on leverage,” said Takahashi.
The group rated the proposed notes A3. The bonds also received A grades from ratings agencies Fitch and Standard & Poor’s.
Seeking buyers after satellite spin off
KT is tipped to be looking for buyers for its space assets after it spun off its satellite business in December. The new company, called KT Sat, now comprises the parent group’s lease business of satellite repeaters and devices, as well as its satellite services assets. Before its formation, KT said the unit will have a total equity value of around W404.27bn (US$363.5m), with assets of W424.9bn (US$382m) and liabilities of W20.6bn (US$18.5m).
The company said the main purpose of the move was to foster growth through streamlining its management.
However, well-placed sources suggest it is the precursor to a possible sale of the satellite assets in 2013.
Despite selling a number of spacecraft in recent years, KT remains active in the satellite sector and owns the Koreasat-5 and Koreasat-6 birds. It also has transponder leasing agreements with satellite operators including Asia Broadcast Satellite, Intelsat and AsiaSat.
