Three to lead New World Resources' high-yield deal

07.05.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

Three banks will arrange the 300 million euro high-yield bond sale for New World Resources, a holding company for four Czech coal and coke...

...mining, transport, gas and energy companies, according to marketing material for the bond.

Morgan Stanley, Barclays and Citi are leading the deal, which matures in 2015.

The company will use 150 million euros of the proceeds of the senior note sale to repay its senior secured facilities, with the remainder used for general corporate purposes, the documentation says.

Credit rating agency Standard & Poor's on Friday assigned a rating of B to the notes, while Moody's Investors Service rated them one notch lower, at B3.

The company, through its subsidiary OKD, is the only producer of hard coal in the Czech Republic and a leading producer of coal in Central Europe. In 2006 it produced about 13.5 million tons of coal from its five mines.

[LONDON/Reuters/Finance.cz]

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