InfraBuild prices $550m bond deal with hefty interest
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The news: InfraBuild has successfully priced a three-year secured notes issue at USD350 million ($550 million), paying big interest as creditors and authorities pursue other GFG Alliance companies for massive debts.
The numbers: The bonds were priced with a yearly coupon rate of 14.5%, an original issue discount of 2%. The issuance is expected to close on or about 15 November 2023, with the notes due in 2028.
The context: Other businesses within Sanjeev Gupta's GFG Alliance have struggled to secure debt since the 2021 collapse of former lender Greensill Capital, preceding criminal investigations into GFG by French and UK authorities. Credit Suisse and ArcelorMittal are among creditors pursuing GFG's companies over money borrowed through Greensill. InfraBuild leaders toted confidence in the steelmaker, noting its $5.7 billion net revenue in FY23 despite moderating market conditions.
What they said: "This outcome represents a resounding endorsement of our performance. The quality and diversity of existing and new investors is testament to the market’s confidence in our future," GFG Alliance executive chair Sanjeev Gupta said in a statement.
The sources: InfraBuild Media Release, Financial Times
