NROCC Brings Rare Single B Bond

Jamaica’s National Road Operating and Constructing Company Limited (NROCC) priced a $294.18m 2024 bond Thursday after generating some $400m demand, marking the first single B credit to hit the market in quite some time. Proceeds are going to take out 8% notes due 2012. With some solid anchor orders behind it, the 144a/RegS bond was able to price and close within a matter of hours, coming at par to yield 9.375%. Interest came from both Caribbean and dedicated EM accounts, who were comping against the sovereign and Air Jamaica bonds. The sovereign’s 2019s and 2025s were trading around 7.25%-7.50% and 8.25% area. “The market is still choppy. With a low single B credit you need to come out with some critical anchor interest from local accounts,” says one banker. The B3/B minus credit comes with a 100% guarantee from the Jamaican government. Credit Suisse was the sole bookrunner and Oppenheimer & Co. was co-manager on the transaction. The bonds have a 13-year life with 12.5 average year life. The notes are redeemable in whole or in part by the issuer at a make-whole premium of T+100 basis points.