Pacific Century CyberWorks (PCW, PCWKF) Message Board

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Technology Stocks : Pacific Century CyberWorks (PCW, PCWKF)

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To: ms.smartest.person who wrote (4393)	1/7/2001 10:54:10 PM
From: ms.smartest.person	Read Replies (1) of 4541

COMPANIES & FINANCE INTERNATIONAL: PCCW set to pay dearly for Dollars 4.7bn loan Financial Times, Jan 5, 2001 Pacific Century CyberWorks, the Hong Kong internet and telecommunications company, is likely to have to pay around 60 basis points - 0.6 per cent - more than expected for a USDollars 4.7bn loan. Neither PCCW nor the five banks arranging the transaction would comment, but sources familiar with the deal said the pricing reflected a rise in borrowing costs for telecom companies in the bond markets. The revised terms would result in PCCW paying interest and fees averaging about 150 basis points over Libor. Bankers said the original expectations on pricing were aggressive, given the large size of the loan. The pricing could lead to more expensive loans for Hong Kong companies and might affect pricing for other telecom operators, bankers said. Banks have become more wary about extending loans to telecom companies following a series of warnings from regulators about over-exposure to the sector. Loans are taking longer to complete, and some banks are demanding higher returns. PCCW insists it can weather any short-term difficulties in the debt market and will not be affected if there is a delay in syndicating the loan. PCCW shares have fallen 80 per cent since it announced last February the purchase of Cable & Wireless HKT from Cable & Wireless of the UK, partly due to concerns about how it would finance the cash element of the deal. Other telecom loans in the market include a Pounds 3bn (Dollars 4.5bn) deal for Hutchison 3G in the UK. The company said it was confident of completing its loan later this month, despite taking slightly longer than originally expected. PCCW's Dollars 4.7bn loan is being arranged by Bank of China, HSBC Holdings, JP Morgan Chase, Barclays and Mizuho Holdings. The loan is part of PCCW's effort to refinance a Dollars 12bn bridging loan used to help pay for its takeover of C&W HKT. Copyright © The Financial Times Limited search.ft.com

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