Korean operator KT Corp is looking to raise US$1bn from a dual-tranche US dollar note offering to repay debt.
The first US$650m tranche will mature in three years and carry a 100 bps interest rate above the yield on three-year treasuries.
The second…
Korean operator KT Corp is looking to raise US$1bn from a dual-tranche US dollar note offering to repay debt.
The first US$650m tranche will mature in three years and carry a 100 bps interest rate above the yield on three-year treasuries.
The second US$350m tranche is due in five years and carry a 110 bps rate higher than the government bonds of the same maturity.
Moody’s has assigned a Baa1 senior unsecured rating to the offering, saying it “reflects the company’s competitive strength, as the largest integrated operator by revenue in the Korean telecommunications market, with significant market shares across all spectrums of the quadruple-play strategy of fixed line, broadband, mobile, and TV”.
The ratings agency anticipates KT’s adjusted debt/EBITDA, excluding its financial subsidiaries, to remain in the 2x-2.5x range within the next two years.
A few weeks ago, KT withdrew from the bidding process for a stake in state-owned Tunisie Telecom because of reported valuation differences.
