HONG KONG - Coastal Road Corp., incorporated in the Philippines, may make a $165 million, 12-year bond issue at 12%, a source close to the deal said on Tuesday.
The size of the issue was cut from $175 million because the company removed the sub-debt account to maintain its debt service coverage ratio at the same level as it would have were it to pay 11%, the source said.
An informal guidance of around 11% was considered earlier, market sources said.
The bond issue could be priced on Wednesday in New York, the source said.
The toll road operator met investors earlier ahead of the bond issue and hired Bank of America Merrill Lynch and Standard Bank to manage the deal.