First Pac: did it get enough cash?

First Pacific''s downsized bond issue may not be sufficient for its pressing needs.

First Pacific has managed to price its debut high yield bond issue - collateralised by its holding in Indofood - but the question remains whether it has raised enough. The deal, when originally mandated, was envisioned as a $150 million three year transaction with a coupon of around 6.5%.

In the ensuing weeks market conditions deteriorated and the bond ended up being scaled back to $115 million with an 8.25% coupon. The company - which is cashflow negative - needed to raise the funds principally to repay a $107.4 million loan to ING according to page three of the bond documentation.

A $150 million bond would have been ideal...

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