Bangkok--14 Dec--Aziam Burson-Marsteller
True Move Co Ltd, the mobile phone subsidiary of True Corporation Plc (SET: TRUE), has successfully issued USD465 million of seven-year bonds to international investors.
True Corp Chief Financial Officer William Harris said the success of the issue, which attracted offers of more than USD750 million, indicated the extent of investor confidence in the fast-growing True Move. The offer represents the largest-ever one-tranche US Dollar bond offering by a Thai corporate.
“This was the first time True Move had sought to raise funds globally and we’re delighted with the response from investors in the US, Europe and Asia.”
True Move would use the issue’s net proceeds to repay around two-thirds of the debt it owes to Thai commercial banks, said Mr. Harris.
“This allows True Move to significantly extend the average life of its debt as the seven-year bullet maturity replaces debt with an average life of just 2.5 years. More importantly this frees up substantial cash flow by moving about half of our scheduled repayments to the end of 2013. The reduction in debt service requirements (principal and interest) is estimated at approximately Baht 1.3 billion in 2006 and 2007 and more than Baht 8 billion from 2008 thru 2011.”
In addition, the proportion of True Move’s total debt held at floating rates will fall to 28% from approximately 80%, providing the company with greater certainty around its future debt obligations. The foreign exchange risk associated with the bond issue has been fully hedged.
True Move is Thailand’s third-largest mobile phone operator with 6.8 million subscribers and a market share of 19%, as at September 30, 2006. Since the start of 2005 its subscriber numbers have doubled and its market share has risen from 13%. Thailand’s mobile market is expected to continue its rapid growth and True Move is well-placed to take advantage of this.
By region, US buyers bought 70% of the bonds, Asian investors 19% and European investors 11%. Fund managers accounted for 76% of the buyers, insurers 11%, banks 7%, and others 6%.
The bonds are unsecured and carry a fixed coupon rate of 10.75%. They were priced at 98.799% to yield 11% and mature on December 16, 2013 with a bullet (one-time) payment on that date. The interest payment will be made semi-annually in June and December of each year. True Move may redeem these bonds in whole or in part at any time.
Rated “B2” by Moody’s Investors Service and “B” by Standard & Poor’s, the bonds are listed on the Singapore Exchange Securities Trading Ltd.
The issue’s bookrunners were Citigroup Global Markets Ltd and Deutsche Bank AG. Co-managers were CALYON, DBS Bank Ltd and WestLB AG.
For more information, please contact:
PR Department, True Group
Sisadhi Reuben Tel: +66 (0) 2643 2463 Email: [email protected]
Anchalika Kausangunsilp Tel: +66 (0) 2699 2727 Email: [email protected]
Nattakorn Plubprasit Tel: +66 (0) 2699 2771 Email: [email protected]
Aziam Burson-Marsteller
Porntip Lertvechakul Tel +66 (0) 22529871-7 Email: [email protected]
Jaruwan Vorarakthananune Tel +66 (0) 22529871-7 Email: [email protected]