India’s JSW Paints is likely to raise money by selling bonds that mature in four years and in five years, according to two merchant bankers with direct knowledge of the matter who spoke on Thursday.
The company is expected to refinance the funding it took on to pay for an acquisition. The bankers said the paint maker should go ahead with the sale in the next couple of weeks.
By offering debt with two different lifespans, JSW Paints would spread its repayments across the four-year and five-year marks instead of tying them to a single date. The bonds would replace the borrowing linked to its acquisition.
The bankers said the company is leaning toward these two maturities as it prepares to approach investors. The timing they gave suggests the issue could reach the market within a fortnight or so.
JSW Paints is an Indian company in the paints business. The planned bond sale shows how it intends to handle the cost of its acquisition-led expansion by moving to fresh debt.
The bankers’ comments came on Thursday, and the sale is described as likely rather than final.