GCL New Energy Issues US$500 million 7.1% Senior Notes due 3 years Over-subscribed by around 7 times

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(24 January 2018, Hong Kong) The GCL New Energy Holding Limited (“GCL New Energy” or the “Company”, Stock Code: 451.HK); together with its subsidiaries, the ‘‘Group’’ is pleased to announce that the Company entered into the Purchase Agreement in connection with the issue of US $500 million 7.1% senior notes due 3 years. 

The estimated net proceeds of the Notes Issue, after deduction of underwriting discounts and commissions and other estimated expenses in connection with the Notes Issue, will amount to approximately US$493 million, which the Company intends to use for the development of its business operations, repayments of financial borrowings, including the Credit Suisse term loan facility, and other general corporate purposes. 
Bank of American Merrill Lynch, Haitong International, Credit Suisse, Standard Chartered Bank and CLSA are the joint global coordinators of the proposed issue of the Notes. Bank of American Merrill Lynch, Haitong International, Credit Suisse, Standard Chartered Bank, CLSA, Orient Securities (Hong Kong), VTB Capital and SPDB International are the joint lead managers and joint bookrunners of the proposed issue of the Notes. 
The Notes are expected to be rated “B+” by Standard & Poor ’s Ratings Service and “Ba3” by Moody’s Investors Service. 
A confirmation of the eligibility for the listing of the Notes has been received from the Stock Exchange. Listing of the Notes will be taken on the Stock Exchange.
It was the Company’s first issue of notes in US dollars, to further diversify its financing channels, enhance its cash flow and to add momentum to its development in year 2018. The Notes Issue received strong response from global investors and is oversubscribed around 7%, which the Company Board believes demonstrates investor confidence in the Company’s management and the Group’s long-term prospects.