Sanjeev Gupta's GFG Alliance Ltd. launched US$475 million of five-year bonds after it shelved the planned A$1 billion IPO of Australian steel unit Infrabuild, Financial Times reported Sept. 5.
The bonds will be backed by Infrabuild, and JPMorgan, which is handling the bond issuance, will provide a A$250 million facility that will rank ahead of the unsecured bonds.
The proceeds will fund the A$745 million repayment of previous asset-backed debt towards White Oak and Greensill Capital.
The bonds will carry a Ba3 rating from Moody's and a BB- rating from Fitch, according to the report.
GFG Alliance reportedly postponed the planned IPO of parts of its Australian Liberty Steel unit on the ASX due to market volatility and the company's tight year-end timeline.
