HONG KONG, CHINA - Media OutReach - 16 November 2017 - WTT Investment Ltd ("WTT Investment"), which conducts its business through its wholly owned subsidiary WTT HK Limited ("WTT"), the only enterprise-focused fixed-line telecommunication services operator in Hong Kong, successfully priced its debut international capital markets offering following engagement with investors in Asia, Europe and the United States.
The USD 670 million senior notes offering due 21 November 2022 (the "Notes") will pay a fixed coupon of 5.5% per annum and were priced at par to yield 5.5% per annum. The Notes were rated B1 by Moody's Investors Service and BB- by Fitch Ratings. WTT Investment intends to use proceeds from the offering to refinance existing indebtedness and for general corporate purposes.
The Notes were priced on the back of USD 3.3 billion in demand from more than 140 investors (an over-subscription of approximately 5 times) and were allocated 76% into Asia, 13% into Europe, and 11% into the United States. By investor type, asset and fund managers took 88%, banks and private banks took 8%, insurance / pension funds and others took 4%.
The offering was likewise noteworthy as:
- The first rated Hong Kong telecom high yield bond offering in over a decade
- Largest-ever bond market debut by a local Hong Kong high yield corporate
- Largest local Hong Kong high yield corporate bond in over a decade
Vincent Ma, WTT's Chief Executive Officer remarked: "The current bond market is attractive, allowing us to reduce overall borrowing cost as well as optimizing our capital structure for more operational flexibility to execute our strategies. We expect this offeringwill position us well fora new era of growth. Weare confident that we will continue to deliver robust market share growth,expand our customer base with increasing market penetration,andincrease our wallet share from existing customers."
Teck Kong, Partner ofMBK Partners, and Ricky Lau, Partner of TPG Capital, the two joint shareholders of WTT, added: "We are thrilled by the response from the investor community. We believe that this is a clearrecognition of the success that WTT has achieved. We, as long term shareholders for the company, will continue to pledge our full support to the management and work with the team closely to bring WTT to new heights."
The Notes are being offered and sold in an offering to persons who are (a) qualified institutional buyers ("QIBs") as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and (b) outside the United States under Regulation S under the Securities Act.
WTT Investment intends to list the Notes on the Singapore Exchange Securities Trading Limited (the "SGX-ST"). Approval in-principle has been received for the listing and quotation of the Notes on the official list of the SGX-ST. The approval in-principle from, the admission of the Notes to the official list of, and the listing and quotation of the Notes on, the SGX-ST are not to be taken as an indication of the merits of WTT Investment, WTT or the Notes. SGX-ST assumes no responsibility for the correctness of any of the statements made or opinions expressed or reports contained in this press release. Citigroup, HSBC and Standard Chartered Bank served as Joint Global Coordinators on the transaction with Citigroup likewise appointed to bill and deliver the transaction.
Formerly known as Wharf T&T Limited and acquired by MBK Partners and TPG Capital in 2016, WTT is the only enterprise-focused fixed telecommunication services operator with significant fixed line infrastructure in Hong Kong. WTT has already invested over HK$7 billion in its network to create a leading fiber-optic end-to-end network in Hong Kong covering 5,300 commercial buildings. Its Fiber-To-The-Desk ("FTTD") coverage reached more than 83% of the buildings in its network. Together with a robust in-house service engine offering a comprehensive range of ICT products and bespoke services, WTT is a trusted partner of its diverse base of over 55,000 business customers serving their mission critical needs.
ABOUT MBK PARTNERS
MBK Partners is a leading private equity fund that manages more than US$15.0 billion in funds focusing on investments in North Asia. It seeks to acquire industry-leading companies and, in partnership with management, to grow and create value in the companies over the long term.MBK Partners' investors include government agencies, public and corporate pension funds, financial institutions, funds of funds and university endowments from Korea, China, Japan, Southeast Asia, North America, Western Europe and the Middle East.
ABOUT TPG CAPITAL
TPG is a leading global alternative asset firm founded in 1992 with more than $73 billion of assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, Seoul, and Singapore. TPG's investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio. For more information, visit www.tpg.com.
The securities referred to herein have not been, and will not be, registered under the Securities Act, or any state securities laws of the United States and may not be offered or sold absent registration, or an exemption from, or in a transaction not subject to, registration under the Securities Act. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and management, as well as financial statements. WTT Investment does not intend to register any securities in the United States or to conduct a public offering of securities in the United States. Nothing in this communication shall constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or sale would be unlawful.