India's Essar Steel postpones benchmark dollar-denominated note sale

By Paul A. Harris

St. Louis, April 5 - India's Essar Steel Holdings Ltd. postponed its benchmark offering of dollar-denominated seven-year senior unsecured notes (B2/B), an informed source said on Wednesday.

Investors were concerned about the company's performance, given the use of proceeds, which included capital expenditures and acquisitions.

The deal was also impeded by fallout from the unfolding crisis in Europe, which centers on the distressed sovereign debt of Greece, the source said.

The deal could come back to the market within six months, pending Essar Steel's performance in the interim, the source added.

Bank of America Merrill Lynch, Deutsche Bank Securities and Standard Chartered Bank were the joint bookrunners.

In addition to capital expenditures and acquisitions, the Mumbai, India-based vertically integrated global steel producer intended to use some proceeds from the bond deal to repay debt and for general corporate purposes.

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