Asciano, AGL and Orica prepare offshore debt sales
The Financial Review reported that following the renegotiation and simplification of its syndicated loan facilities, Asciano Limited mandated investment banks to sell US$500 million in bonds through the s144A route.As noted here at the start of March, after Moody's and S&P had assigned 'Baa3' and 'BBB-' ratings to Asciano, it has some A$2.25 billion of debt to roll over by 2012 and intends to issue bonds for half this amount.Asciano planned to issue the equivalent of A$500 million of bonds by the fourth quarter of this year with the rest to be issued next year. Issuance is planned for the Euromarket or the US, not the domestic market. Reuters reported that AGL Energy (rated BBB) is to meet with US investors ahead of a US Reg D issue i.e. a bond placement in the traditional private placement market.Orica (rated BBB+) has also mandated a US Reg D issue.AGL issued in the s144A market in September 2003 when it was more highly rated (then rated A), raising US$150 million for 12 years. Between 1999 and 2003 AGL was a regular issuer in the domestic market.Orica has been to the Reg D market on two prior occasions, raising A$559 million in March 2005 and US$180 million in August 2003.APT Pipelines Ltd (rated BBB/Baa2) is the borrowing entity for the APA Group. APT Pipelines raised US$140 million in the US Reg D market in June last year and a couple of months ago was meeting with domestic investors to test the appetite for a domestic issue.The talk now is that a ten-year bond issue to raise A$250 million is under consideration. Indicative pricing is 250 bps over swap. Such an issue would be welcome to restore some issuer confidence in the domestic market.Telstra (A) has been the only other corporate to raise ten-year funds domestically. It issued last month at 200 bps over.