Global Telecom Announces Pricing of $300 mln Bonds by Banglalink

Global Telecom Holding S.A.E. (GTHE.CA)  announced on Monday that Banglalink Digital Communications Limited, its wholly owned Bangladeshi subsidiary, has priced 5-year $300 million 8.625% notes (the “Notes”).

Banglalink is rated B1 by Moody’s Investors Services, Inc. (“Moody’s”) and B+ by Standard & Poor’s (“S&P”), each with a stable outlook. The Notes will be due May 2019 and are expected to be rated B1 by Moody’s and B+ by S&P. Banglalink intends to use the net proceeds from the offering to repay existing indebtedness and to finance capital expenditures.

This transaction marks the first ever international bond offering from Bangladesh, and the transaction received strong investor demand. The Notes will have a re-offer price of 99.008% with a yield to maturity of 8.875%. The transaction is expected to close on May 6, 2014.

Citigroup is acting as the Sole Bookrunner and Lead Manager on this Rule 144A / Regulation S offering.