Papua New Guinea guides $500 million 10-year note to yield 8 3/8%

By Rebecca Melvin

New York, Sept. 27 – Papua New Guinea guided pricing for a $500 million offering of 10-year notes to yield 8 3/8% on Thursday, with final pricing expected later in the session, a syndicate source said.

The 10-year senior unsecured notes (expected rating: B2/B) were heard in the gray market ahead of pricing at 100.375 to 100.5, according to a market source.

Citigroup and Credit Suisse are the bookrunners for the Rule 144A and Regulation S notes, which were expected to have a tenor of five to 10 years.

Proceeds will be used primarily to refinance existing short-term domestic debt and finance government spending on infrastructure and development projects and operational expenses for the Asia-Pacific Economic Cooperation Summit to be hosted by Papua New Guinea in November.

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