Centurion gives results of exchange, tender offer for 2024 notes

By Marisa Wong

Los Angeles, Nov. 18 – Singapore’s Centurion Corp. Ltd. announced results of its Nov. 7 offer to exchange any and all of its outstanding S$55 million of fixed-rate notes due April 12, 2024 (ISIN: SGXF64838828) for a like principal amount of Singapore dollar-denominated 3.5-year notes plus cash and conditional tender offer to buy for cash the existing notes up to the amount of proceeds from an issuance of new notes.

The invitation expired at 11 p.m. ET on Nov. 17.

Holders had tendered S$38.5 million of the notes for exchange and S$10.25 million of the notes for purchase for cash, according to an announcement on Friday.

The cash consideration offered under the exchange offer is 0.25% of the principal amount of the notes exchanged.

The purchase price under the conditional tender is par plus accrued interest.

About 7.79% of the S$38.5 million of new notes to be issued under the exchange offer have been allocated to some controlling shareholders, directors and the chief executive officer of the company and their family members whose notes have been accepted for exchange.

The company expects to announce on Nov. 21 the amount of tendered notes it will accept for purchase under the conditional part of the offer.

The conditional tender offer will be consummated only if additional notes are issued by Centurion under its S$750 million multicurrency debt program. These notes’ proceeds would potentially be used to repurchase notes under the tender offer.

The company said it expects to announce pricing of the additional notes on Nov. 21.

The new notes would have an expected maturity date of May 28, 2026 and would be callable starting one year prior to maturity. The interest rate would initially be 6½%, stepping up to 9% on the first call date of May 28, 2025.

The existing notes have a coupon of 5¾%, which is set to step up to 8¼% on the April 12, 2023 first call date.

The company said it plans to redeem all of the existing notes at par plus interest on the April 12, 2023 coupon payment date, with notice to be given no later than March 21, but that it has received interest from major noteholders who wish to extend their bond investment in Centurion and its subsidiaries.

Settlement of the exchange offer is expected on Nov. 28. Settlement of the tender offer is expected on Dec. 1.

DBS Bank Ltd. is the dealer manager.

Tricor Barbinder Share Registration Services (+65 6236 3550, +65 6236 3555 or is.corporateactions@sg.tricorglobal.com) is the exchange and tender agent.

Centurion, formerly known as SM Summit Holdings Ltd., is a workers accommodation provider based in Singapore.

© 2015 Prospect News.
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