By Rebecca Melvin
New York, Sept. 28 – Papua New Guinea priced $500 million of 10-year notes (B2/B) at par on Thursday to yield 8 3/8%, according to a syndicate source.
Pricing came tight to initial price talk in the 9% area.
The 10-year senior unsecured notes were heard in the gray market ahead of pricing at 100.375 to 100.5, according to a market source.
Citigroup and Credit Suisse were the bookrunners for the Rule 144A and Regulation S notes.
Proceeds will be used primarily to refinance existing short-term domestic debt, to finance government spending on infrastructure and development projects and for operational expenses for the Asia-Pacific Economic Cooperation Summit to be hosted by Papua New Guinea in November.
| Issuer: | Papua New Guinea
|
| Issue: | Notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 4, 2028
|
| Bookrunners: | Citigroup and Credit Suisse
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody’s: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Guided to 8 3/8% from initial price talk of 9% area
|
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