West China Cement said it proposes to conduct an international offering of guaranteed senior notes and will commence a series of roadshow presentations beginning on or around 12 January 2011 to certain institutional investors in Asia, Europe and the United States.
The principal amount, the interest rates, the payment date and certain other terms and conditions of the proposed notes issuance are yet to be finalized.
Deutsche Bank and ICBCI Securities, as the joint lead managers, Deutsche Bank and ICBCI Capital, as the joint bookrunners, and SinoPac Securities, as a co-manager, are managing the proposed notes issuance.
West China Cement intends to use the proceeds to expand its production capacity, repay the ICBC Bridge Loan and for its general corporate purposes to enhance its liquidity position.
-Standard & Poor’s Ratings Services said today that it had assigned its ’BB-’ long-term corporate credit rating to China-based cement producer West China Cement Ltd. (WCC). The outlook is stable.
"The rating on WCC reflects the company’s good market position in Shaanxi province, above-average profitability, and a track record, albeit short, of steady financial performance. These strengths are moderated by the company’s small operating scale, single product, and heightened concentration in one region. The rating is also constrained by our uncertainty about the company’s execution of its aggressive expansion," said Standard & Poor’s credit analyst Christopher Lee.