JP Morgan Not Involved, Not Aware Of Hong Kong PCCW Bond -Source
June 05, 2001 12:57 AM
HONG KONG -(Dow Jones)- A source at JP Morgan said "there is no truth" to local press reports Tuesday that the investment bank is involved in arranging a US$2 billion bond issue for Pacific Century CyberWorks Ltd. (PCW) to refinance part of its US$4.7 billion syndicated loan.
"There is no truth we have a mandate," he said.
The source also said he has no knowledge of such a bond issue being arranged by another bank.
He added that he isn't aware of PCCW being under pressure to refinance its loans, given that the shortest one matures in three years.
According to the Hong Kong Economic Times, which was quoting unnamed banking sources, the US$2 billion bond issue would be used to refinance the three-year, US$1.5 billion tranche of the existing loan.
The paper said the bond will be issued by PCCW's fixed-line unit, which is also the holder of the syndicated loan, and is expected to be completed before the third quarter this year. It said the issue is being arranged by JP Morgan and Morgan Stanley.
In January JP Morgan merged with Chase Manhattan, which was part of the five-bank group arranging PCCW's three-tranche syndicated loan earlier this year. That group also included Barclays Capital Asia Ltd., BOCI Capital Ltd., FUJI (Mizuho Financial Group) and HSBC Investment Bank Asia Ltd.
The US$4.7 billion loan comprises a three-year US$1.5 billion tranche with an interest rate at 85 basis points above the London interbank offered rate, a US$2.3 billion five-year tranche at 115 basis points above Libor, and a US$900 million seven-year tranche at 145 basis points above Libor.
A PCCW spokeswoman said the company has no comment on the reports.
PCCW's shares ended the morning session flat at HK$2.55, compared with a modest 0.31% rise in the blue-chip Hang Seng Index.
-By Mia Trinephi and Anette Jonsson, Dow Jones Newswires; 852-2802-7002; anette.jonsson@dowjones.com
-0- 05/06/01 04-43G
(This story was originally published by Dow Jones Newswires)
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