By Reshmi Basu
New York, May 14 - Citic Resources Holdings Ltd. (Citic) sold a $1 billion offering of seven-year senior unsecured notes (Ba2/BB) at 99.726 to yield 6.8%, according to a market source.
Bear Stearns and Morgan Stanley were lead managers for the Rule 144A and Regulation S deal, which was issued via Citic Resources Finance (2007) Ltd.
Hong Kong-listed Citic Resources is a base metals producer.
Proceeds from the sale will be used to finance the purchase of 50% of certain Kazakhstan oil and gas assets from its parent Citic Group and for working capital.
The issuer has recently signed agreements to buy oil assets in Kazakhstan and northeastern China in attempts to become an oil producer as well.
| Issuer: | Citic Resources Finance (2007) Ltd.
|
| Guarantor: | Citic Resources Holdings Ltd.
|
| Amount: | $1 billion
|
| Issue: | Senior unsecured notes
|
| Maturity: | May 15, 2014
|
| Coupon: | 6¾%
|
| Issue price: | 99.726
|
| Yield: | 6.8%
|
| Spread: | 214.6 bps over Treasuries
|
| Joint bookrunners: | Bear Stearns, Morgan Stanley
|
| Pricing date: | May 14
|
| Settlement date: | May 17
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S
|
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