Thailand's CP All to refinance debt used for Siam Makro takeover
BANGKOK, March 3
BANGKOK, March 3 (Reuters) - Thailand's largest convenience store chain CP All Pcl is raising 160 billion baht ($4.9 billion) through a bond issue and long-term syndicated loans to refinance debt used for an acquisition of wholesaler Siam Makro, sources said.
CP All, controlled by Thailand's wealthiest man, Dhanin Chearavanont and which operates stores under the 7-Eleven brand, has been looking to refinance a short-term $4.2 billion loan used for the $6.6 billion acquisition of the cash-and-carry wholesaler - Asia's most expensive consumer sector deal by multiple at 53 times earnings.
Thailand's political crisis and an economic slowdown that have seen the value of the Thai baht THB=TH slide by around 11 percent since April had bruised Dhanin's ambitions for the enlarged group.
The company will sign a 120 billion baht loan deal with domestic banks next week, one source with direct knowledge of the deal said.
The company will also offer up to 40 billion baht in bonds between March 24-26, with bookbuilding set for March 14, another source said, adding the bonds will have maturities of 3, 5, 7 and 10 years.
The bond's underwriters include Bangkok Bank, Krung Thai Bank, Bank of Ayudhya, Siam Commercial Bank, Standard Chartered Bank (Thai) and Phatra Securities, HSBC (Bangkok branch), Thanachart Bank and Capital Nomura Securities.
($1 = 32.6250 Thai baht) (Reporting by Manunphattr Dhanananphorn; Writing by Khettiya Jittapong; Editing by Louise Heavens)