Under the lead management of DBSÂ Bank, Intel Capital, the strategic investment arm of Intel Corp, has purchased an exchangeable into PCCW that stands to increase its stake by a further 1.4%.
As the bonds were issued by the Singapore-listed parent company Pacific Century Regional Developments PRCD, the deal will not increase the debt load of PCCW-HKT into which it is exchangeable. This is particularly important for the group ahead of its March 31 year-end, as it is trying to bring debt to EBITDA below 3.5 times - the trigger on its loan covenants allowing it to upstream more dividends from the cash cow PCCW-HKT to the parent PCCW,...
