| HONG KONG
HONG KONG SINGAPORE Feb 8 MMI
International, a technology company owned by private equity fund
KKR & Co LP, is planning a rare $300 million high-yield
bond to refinance a buyout loan, in a sign that companies are
tapping non-traditional funding avenues to overcome difficult
initial public offering and bank loans markets.
Singapore-based MMI, which makes parts for hard disk drives
and has U.S.-based Seagate Technology Plc as its major
client, said it had appointed Credit Suisse Group AG,
JP Morgan Chase & Co and UBS AG as lead banks
for the five-year bond.
The $300 million bond will pay down about $222 million
outstanding on the 2007 loan, and $75 million of a bridge loan
that an MMI company used to acquire IntriPlex Technologies.
UBS, with Deutsche Bank AG and Macquarie Bank,
was a lead on a planned $1 billion initial public offering for
MMI in 2011, which was pulled due to market conditions.
KKR subsidiary, KKR Capital Management, is also a co-manager
for the bond. Bankers familiar with the U.S. fund said the
subsidiary's role illustrated the firm's plans to diversify
revenue through fee income, and to support its portfolio
companies on their deals in Asia.
KKR declined comment on the deal.
Thomson Reuters publication IFR Asia reported on the bond
earlier on Wednesday.
High-yield bonds, also known as junk bonds because of their
sub-investment grade ratings, are commonly used in the United
States and Europe to finance private equity buyouts, but Asia's
private equity buyouts have up to now been financed by cheaper