AAA Naspers increases bond sale to $1bn

Naspers increases bond sale to $1bn

Myriad International Holdings (MIH), the electronic media arm and wholly owned subsidiary of South Africa-based media group Naspers, has placed a further US$250m 6% notes due 2020 (follow-on bonds).  The placement follows MIH’s successful pricing of a bond offering of $750m 6% notes due 2020.

As with the original offering, Naspers, which is guaranteeing the bonds, has issued a statement that:  “The net proceeds will be used for general corporate purposes, including future acquisitions and the repayment of certain amounts outstanding under the Naspers group’s revolving credit facilities.”

Moody’s has assigned a Baa3 rating to the $750m notes, reflecting Naspers’ leading market positions across diverse media subsectors. Naspers’ debt obligations include a $2bn revolving credit facility due in 2016, and a $700m senior unsecured bond due in 2017.

MIH’s recent M&A and investment activity includes the acquisition by Ibibo (80% majority-owned by Naspers/MIH) of India -based online bus ticket agent RedBus, and also a fifth fundraising round for India-based retailer Flipkart.

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