TCL to top off debt restructuring with new loan syndication

miércoles 27 de mayo de 2015 13:53 GYT
 

By Paul Kilby

NEW YORK, May 27 (IFR) - Trinidad Cement Limited (TCL) is poised to launch a US$245m five-year term loan as it seeks to turn a new leaf following the completion of a debt restructuring earlier this year.

Bank meetings in New York on Thursday will kick off a syndication being led by Credit Suisse and Citigroup, whose bridge loan to the company is expected to be taken out with this transaction.

After failing to bring a debut international bond to market last year, TCL was forced in October to miss a debt payment for the second time this decade and enter into restructuring talks with its creditors.

Since then, the company has used a US$245m nine-month bridge loan through Credit Suisse and Citigroup to prepay its secured and unsecured debt at a discount.

That loan carried an interest rate of Libor plus 625bp, with quarterly increments of 1%.

The restructuring process also saw Cemex, the Mexican cement producer and the single largest shareholder in TCL, up its stake to 39.5% from 20% through a rights offering that raised an additional US$57.13m.

In May 2014, the issuer tried to gain some breathing space by extending maturities through a US$325m-equivalent debut international bond issue. However, the company was forced to shelf the transaction, which saw order books reach just US$389m.

The borrower failed to see eye-to-eye with the buyside on pricing, which started in the mid to high 8s and was revised to 9.5% amid talk that investors were seeking double-digit yields.

GMP Securities, Byron Capital Markets and Jamaica Money Market Brokers were the lead managers on the bond transaction. (Reporting By Paul Kilby; editing by Shankar Ramakrishnan)