Metromedia<MFNX.O> to sell $600 mln bond next week
LONDON, Nov 2 (Reuters) - Telecoms infrastructure provider Metromedia Fiber Network Inc. is courting investors for a dual-currency bond worth $600 million, banking sources said on Tuesday.
The issue, to be denominated in dollars and euros, will be the New York-based company's first tap of Europe's fledgling high-yield bond market.
"The company has major operations in Europe so it makes sense to issue part of the deal, probably under half, in euros," said one banking source.
He said the bond, which will carry a 10-year maturity, is scheduled to be priced on November 11, following a two-week marketing tour in Europe and the United States. No price indications have yet been disclosed.
Metromedia, which designs and builds high-capacity fiber-optic networks for telecoms carriers, corporate and government customers, will use proceeds from the bond to finance capital expenditure.
The company announced a major strategic agreement with Bell Atlantic Corp <BEL.N> last month, a factor which spurred a one notch upgrade to B+ by rating agency Standard & Poor's Corp earlier this week.
Metromedia has appointed Salomon Smith Barney sole lead manager on the deal and Chase Manhattan, Donaldson Lufkin and Jenrette, Goldman Sachs and Morgan Stanley Dean Witter co-managers.
The company filed a $2.25 billion debt and equity shelf with the U.S. Securities and Exchange Commission in October.
|
