17 Jan 2018 15:44

Yield guidance for PhosAgro notes lowered to approx. 4.125%, demand tops $1.9 bln - source

MOSCOW. Jan 17 (Interfax) - Yield guidance on fertilizer producer PhosAgro's dollar-denominated Eurobonds maturing in April 2023 has been lowered from approximately 4.375% to approximately 4.125%, a banking sector source told Interfax.

In other words, guidance is now 4.125% give or take 12.5 basis points, or between 4.00% and 4.25%.

Demand exceeds $1.9 billion, however the offering will not exceed $500 million.

The bid book for the bonds is open and pricing is expected later today. The source said the book was expected to close 5:00 p.m. local time.

A road show for the bonds took place in Moscow, London and New York from January 12-16.

VTB Capital, Sberbank CIB, BofAML, JP Morgan, Citi, Raiffeisen Bank International, SG CIB, Renaissance Capital, UBS and UniCredit and running the offering.

The proceeds will be used to refinance an issue of five-year Eurobonds maturing in February 2018.

PhosAgro debuted on the Eurobond market in February 2013, placing $500 million in five-year Eurobonds at a yield of 4.204% per annum.

Last year, the company returned to the market after a four-year absence, selling $500 million in 4.5-year bonds at a yield of 3.95%. Demand exceeded the offering threefold and foreign investors bought about 80%, led by U.S. investors with 32%.

In addition to the Eurobonds, PhosAgro has $122 million in debt coming due in 2018, $164 million in 2019 and $283 million in 2020. The bulk of the debt - $825 million - comes due in the period after 2021.

As of the end of the third quarter, the net debt/LTM EBITDA ratio was 2.1x.