PCCW adopts new structure for $300m global bond issue

18 Apr 2012

Hong Kong’s PCCW managed to close its $300m bond issue, but only after facing investor doubts over a structure that leaves them subordinated to those holding bonds issued — or guaranteed — by the main telecommunications subsidiary.

PCCW priced $300m of 10 year bonds on April 12 at 387.5bp over Treasuries, in line with final guidance, a good result for the company but too punchy for some investors, said bankers and analysts.

The bond was guaranteed by PCCW Ltd instead of HKT Group Holdings, the ...

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