8 Feb 2018 18:17

Final guidance for 5-yr Domodedovo Eurobonds around 5.125% - source

MOSCOW. Feb 8 (Interfax) - Final yield guidance on five-year Eurobonds being offered by Domodedovo International Airport is approximately 5.125% (+/- 5 basis points, or between 5.075% and 5.175%), a banking sector source told Interfax.

Initial guidance was approximately 5.375% but was lowered to 5.125%-5.25%. It is anticipated the company will place $300 million in bonds, demand for which exceeds $800 million.

Credit Suisse, Raiffeisen Bank International, Societe Generale CIB and UBS are organizing the offering.

A road show in Russia and Europe began on February 2.

Proceeds from the placement will be used to refinance Eurobonds maturing this year: Domodedovo placed $300 million in debut five-year bonds at 6% pa in 2013. It bought back some of the bonds in 2016, but $221.5 million are still outstanding.

Domodedovo last tapped the Eurobond market in November 2016, when it sold $350 million in five-year paper at 5.875%.

The company describes its leverage as "moderate," with net debt/adjusted LTM EBITDA of 2.18x at end-September 2017.

Domodedovo is the second largest airport in Russia by passenger traffic. In 2017, it served 30.7 million passengers, up 7.6% over 2016. After construction of the T-1, T-2, and T-3 segments of the airport, the throughput capacity of Domodedovo should grow 2.5-fold to 75 million passengers. Businessman Dmitry Kamenshchik is listed as the airport's sole shareholder.