JSW Steel commenced roadshows for its dollar bonds on Monday with an eye on raising close to a billion dollars. The roadshows and investor calls will be conducted between Monday and Friday in Hong Kong, Singapore, London, New York, Boston and Los Angeles.
JSW Steel commenced roadshows for its dollar bonds on Monday with an eye on raising close to a billion dollars. The roadshows and investor calls will be conducted between Monday and Friday in Hong Kong, Singapore, London, New York, Boston and Los Angeles. As many as ten bankers are associated with the deal, according to sources. JSW Steel confirmed in an exchange notice that the company is contemplating issue of debt instruments in the form of US dollar denominated senior notes, subject to market conditions. “The issue is likely to get priced as early as next Monday. We expect to get a really good deal. The tenor of the deal could be five and/or 10 years. However, the focus this time would be to do a long tenor deal,” said a banker associated with the deal. Sources added that the funds are likely to be used for refinancing purposes. Moody’s Investors Service has assigned a Ba2 rating to JSW’s proposed senior unsecured bonds. “The rating outlook is stable,” it said. It upgraded JSW Steel’s corporate family rating and senior unsecured bond rating to Ba2 from Ba3 recently. Fitch Ratings has assigned a ‘BB(EXP)’ expected rating to JSW Steel’s proposed bonds. Although sources did not mention an indicative pricing, they said the deal is likely to attract a better pricing than those of its peers. “This one is a much better credit and it is directly being issued by the parent. From a leverage, structure and ratings perspective, the issue seems to be much better. It will be a high-yield issue. JSW Steel has done two foreign currency bond issues over the past four years and investors have had a good experience with them,” an investment banker said. In 2014, the company had done its first dollar bond issue through which it raised $500 million through five-year paper at a coupon rate of 4.75%. It then tapped the dollar bond market again in April 2017 when it raised $500 million at a coupon rate of 5.25%. JSW Group is looking to acquire a few steel assets undergoing insolvency proceedings in the National Company Law Tribunal (NCLT), as well as the Italian steelmaker Aferpi. In all, the acquisitions are understood to be in the range of `5,000-5,200 crore. JSW Steel is the lone bidder for Monnet Ispat, which is a 1.5 million tonne per annum integrated steel plant along with associated facilities.