Dominican Republic resort Cap Cana to sell $200 M bonds
New York.– Dominican Republic's Cap Cana tourism resort plans to sell $200 million of senior secured notes to accelerate construction of the first phase of development, according to a syndicate official at Bear Stearns.
The deal size is currently set at $200 million, and pricing guidance should be available by the middle of next week, the official said.
They will be seven-year amortizing bonds with an average life of five years, the person said.
The bonds are expected to be rated at the sovereign ceiling, one notch above recent deals done by Dominican Republic power companies, the person said.
Moody's Investors Service currently has the Dominican Republic's country ceiling at a speculative grade B1, while the sovereign rating is two notches lower at B3. Both Standard and Poor's and Fitch Ratings give the country a single-B rating.
The Cap Cana resort, located next to Punta Cana international airport, covers an area twice the size of Manhattan. According to the company's Web site, the projected total investment is $1.5 billion.
The company will carry out roadshows in London on Monday and Tuesday, Miami on Wednesday and New York on Thursday, the person said.
Pricing could be at the end of next week, subject to market conditions, he said.
The bonds carry a change-of-control put at 101% of principal plus any accrued and unpaid interest.