bookrunners-bank-on-hot-market-for-risky-road-king-credit

Bookrunners bank on hot market for risky Road King credit

Road King's diversification into property development causes concern for some investors as the company lines up for a $300 million fixed and floating note transaction.

By Rosie Slater

May 02, 2007

Road King Infrastructure, an operator of toll roads and expressways in China - and a property developer since 2004 û is due to price a dual-tranche bond that includes a $200 million seven-year fixed-rate note, and a $100 million five-year FRN. The deal is managed by JPMorgan and DBS and should price this week.

The company suffered downgrades by Standard and PoorÆs and MoodyÆs at the beginning of the week. Standard and PoorÆs lowered its rating to BB two notches below investment grade, while MoodyÆs downgraded it by one notch to Ba2. The ratings agencies are concerned about the higher exposure to ChinaÆs competitive real-estate development sector, and Road King's limited experience...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222