HK PRESS: PCCW Plans To Offer US$2.9B Bond To Retire Debt
June 11, 2001
Dow Jones Newswires
HONG KONG -- Pacific Century CyberWorks Ltd. (PCW) is planning to arrange a bond offering of at least US$2.9 billion to pay off part of a debt it took on earlier this year to refinance outstanding loans, the South China Morning Post reports, citing a banking source close to the deal.
The size of the offering, which will be priced in the third quarter, was increased by nearly 50% from US$2 billion amid increased confidence in PCCW's ability to raise capital in the debt markets, the source told the Post.
PCCW took US$4.7 billion in bridge financing earlier this year for its US$12 billion outstanding loan from its takeover of Cable & Wireless HKT in 2000.
JP Morgan Chase & Co. (JPM), HSBC Holdings Ltd. (HBC) and Barclays Capital, three of five members of the syndicate that arranged the US$4.7 billion debt refinancing, have been appointed joint coordinators on the latest bond offering, the paper said. Morgan Stanley will be global coordinator, it said.
Last week, a PCCW spokeswoman declined to comment on a similar report indicating PCCW planned a US$2 billion bond offering. The spokeswoman couldn't be reached for comment early Thursday. Also last week, a source at JP Morgan denied it was involved in a new bond offering, noting that PCCW's loans don't mature for at least three years meaning it has no pressing need to cover the debt.
Newspaper Web site: scmp.com
-By Hong Kong Bureau, Dow Jones Newswires; (852) 2802 7002
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