Dominican Republic’s Cap Cana to Sell $200 Million in Bonds

Dominican Republic’s Cap Cana tourism resort plans to sell $200 million of senior secured notes to accelerate construction of the first phase of development, according to a syndicate official at Bear Stearns.

The deal size is currently set at $200 million, and pricing guidance should be available by the middle of next week, the official said.

They will be seven-year amortizing bonds with an average life of five years.

The bonds are expected to be rated at the sovereign ceiling, one notch above recent deals done by Dominican Republic power companies.

The Cap Cana resort, located next to Punta Cana international airport, covers an area twice the size of Manhattan. According to the company’s website, the projected total investment is $1.5 billion.