Ratings agency Fitch has assigned an expected BB/RR1 to Pacnet’s proposed U$350m senior secured guaranteed notes due 2018.
The Hong Kong-based data centre and undersea cable operator is expected to use the proceeds from the proposed issue and a new…
Ratings agency Fitch has assigned an expected BB/RR1 to Pacnet’s proposed U$350m senior secured guaranteed notes due 2018.
The Hong Kong-based data centre and undersea cable operator is expected to use the proceeds from the proposed issue and a new term loan to refinance US$300m worth of senior secured guaranteed notes, term loans and vendor financing.
Fitch’s ratings “incorporate Pacnet’s relatively small operational scale, the lack of a cash generative local telecoms business, weak financial position, and strong competition from better capitalised market participants,” wrote the agency.
“Pacnet competes with large telecoms incumbents in its primary service offerings, such as managed data connectivity solutions,” it added.
In Hong Kong, Pacnet competes against mobile operators China Mobile Hong Kong, 3, CSL, PCCW and SmarTone, as well as fixed-line services providers PCCW-HKT and City Telecom, among several others.
