Chicago, April 26 – Arabian Centres Co. sold a $650 million of 5.5-year Islamic bond, or sukuk, with a 5 5/8% coupon (Ba2//BB+), according to a notice on the Saudi Stock Exchange.
The notes came on top of talk for a yield of 5 5/8%, according to a market source.
Pricing was tightened from initial guidance for a 5 7/8% yield.
Order books were in excess of $1.35 billion at the time the deal launched.
Arabian Centres Sukuk II Ltd. was the issuer of the sukuk, and proceeds are expected to be used to refinance a portion of the company’s secured debt under its existing secured Murabaha and Ijara facilities and repay $200 million drawn under its revolving credit facility. The remaining cash will be kept on the balance sheet to finance future capital spending, according to Moody’s Investors Service.
Credit Suisse, Goldman Sachs, HSBC, Albilad Investment, JPMorgan, Jamco Invest and Warba Bank were bookrunners of the deal, according to a source.
The shopping centers company is based in Saudi Arabia.
| Issuer: | Arabian Centres Sukuk II Ltd.
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| Issue: | Sukuk
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| Amount: | $650 million
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| Tenor: | 5.5 years
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| Bookrunners: | Credit Suisse, Goldman Sachs, HSBC, Albilad Investment, JPMorgan, Jamco Invest and Warba Bank
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| Coupon: | 5 5/8%
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| Settlement date: | April 7
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| Ratings: | Moody’s: Ba2
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 5 5/8%, tightened from initial guidance of 5 7/8%
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| Marketing: | Roadshow
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