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Mumbai: Global Cloud Xchange Ltd (GCX), a subsidiary of Reliance Communications Ltd, has informed the BSE of its successful debut in the capital markets with five non-call “senior secured regulation" fixed rate notes worth $350 million, maturing in 2019.

The notes are priced at 100% with a coupon on a yield of 7%. Of the proceeds, $250 million will be used to refinance the Standard Chartered Bank loan taken by Reliance Globalcom BV, the Netherlands-based parent company of Global Cloud Xchange, which is a wholly-owned subsidiary of Reliance Communications, and the remaining proceeds will be used for capital expenditure and general corporate practices.

The notes will be rated B2 by Moody’s and BB+ by Fitch; the company is rated B2 stable by Moody’s and B+ stable by Fitch, the company’s press release said.

The new issue was oversubscribed, with 22% allocated to the US, 29% to Europe and 49% to Asia. Among investors, 78% was allocated to fund managers, 13% to hedge funds, 6% to private banks and 3% to other investors.

The notes are expected to settle on 1 August 2014.

Deutsche Bank and Standard Chartered Bank acted as joint global coordinators.

Shares of Reliance Communications were up 0.33% at 134.85 apiece on Friday at 9.38 am, while the benchmark index Sensex was down 0.02% at 26,266.48 points.

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