Singapore Airlines to partially redeem 0% convertibles on Dec. 24

By Mary-Katherine Stinson

Lexington, Ky., Nov. 7 – Singapore Airlines Ltd. will redeem 50% of its S$6,196,793,517 0% mandatory convertible bonds (ISIN: SGXF74459318) on a pro rata basis and at the relevant accreted principal amount of 110.408 on Dec. 24, according to a notice.

The partial redemption amount is S$1,549,199,206, subject to rounding adjustments by the Central Depository (Pte) Ltd.

The redemption payment will occur on Dec. 26, as the redemption date is not a business day.

There will be no interest paid as a result of the delayed payment date.

As of Nov. 7, there are S$3,098,398,412 of the bonds outstanding.

HSBC Institutional Trust Services (Singapore) Ltd. is the trustee.

Singapore Airlines also announced a reallocation of the approximately S$3.1 billion of gross proceeds of the issue of the mandatory convertibles, which remains unutilized to date, as follows: S$1.55 billion, or 50%, will be used to fund the redemption; S$675 million, or 22%, will be used for capital expenditures to fund aircraft and aircraft related payments, and investments in digital capabilities; S$500 million, or 16%, will be used for operating costs; and S$375 million, or 12%, is earmarked for other fixed commitments.

Singapore Airlines is the flag carrier of Singapore.

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