Qualcomm and Teleepoch
Enter Into a 3G CDMA Subscriber Unit License Agreement, October
6, 2007
MTN chooses Cambridge Broadband
Networks for multi-service wireless network in Rwanda, October 6,
2007
Brazilian government to
publish 3G bidding rules soon, October 6, 2007
KTF 3G service suffers
from technical problems, October 6, 2007
Argentina’s Personal
lunches 3G service in Rosario, October 6, 2007
Russia has it's first 3G
network, October 6, 2007
AT&T could drop Alcatel-Lucent
as 3G mobile network supplier, October 6, 2007
Enea Extends License Agreement
with ZTE for 3G Handsets, October 2, 2007
LG to unveil premium handsets
in Brazil, October 2, 2007
KTF 3G subscribers doubled
in less than 3 months, October 2, 2007
3G policy in India will
be non-uniform, October 2, 2007
- previous news
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Hutchison secures $5 billion for 3G
November 20, 2003
Hutchison Whampoa has raised $5 billion through the selling of bonds
to fund spending on next generation mobile services in Europe. The bond
sale is a record for an Asian company outside Japan. The Hong Kong conglomerate,
controlled by Li Ka-shing, had originally planned to issue $3 billion
of bonds but increased the sale to $5 billion after attracting more than
$12 billion from interested investors.
In bond-sale documents, Hutchison said no assurances it will be able
to complete its 3G phone services, overcome technical glitches, or fend
off competition from low-priced alternative technologies. The launch of
its 3G service in Hong Kong has been delayed because of 3G handset shortages.
The lack of handsets will also hit revenue in the countries that already
has 3G services. Despite problems in 3G, investor are willing to lend
because of Hutchison's other businesses that includes ports, retailing,
real estate and oil. Hutchison took advantage of relatively low borrowing
rates and high levels of liquidity to launch the multi-tranche facility.
Hutchison is offering bonds maturing in 7, 10 and 30 years and offers
a higher yield than companies with the same credit rating to compensate
investors for the risks of its 3G mobile business. The company sold $1.5
billion of 7-year bonds at 185 basis points over Treasuries, $2 billion
of 10-year bonds at 205 basis points over and $1.5 billion of 30-year
bonds at 240 basis points over Treasuries. A basis point is 0.01 percentage
point.
Hutchison has already sold about $4.5 billion of bonds this year. The
latest offering is aimed at locking in low interest rates. While equity
investors assign little or no value to the firm's 3G investment, its other
businesses gives Hutchison strong cash flows. Analysts say the move to
lock in low interest rates would also help lengthen its debt maturity
profile.
Moody's Investors Service and Standard & Poor's have respectively assigned
the new bonds ratings of A3 and A-minus but both ratings agencies had
negative outlook on the issue.
Citigroup, Goldman Sachs, HSBC and Merrill Lynch were involved in selling
the bonds. Deutsche Bank assisted in the 7-year bond, JPMorgan Chase helping
with the 10-year tranche and Morgan Stanley managing the 30 year tranche.
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3G Motorola A920
