CapitaCommercial tenders for S$146.75 million 2% convertibles

By Susanna Moon

Chicago, Aug. 13 - CapitaCommercial Trust began a tender offer for its S$370 million of 2% convertible bonds due 2013.

Pricing for each S$250,000 principal amount of the convertibles will be set using a modified Dutch auction with a minimum price of at least 109.5% of par, according to a company press release.

There is about S$146.75 million of the convertibles outstanding.

The offer will end at 5 a.m. ET on Sept. 6.

Holders also will receive accrued interest up to but excluding the settlement date.

The tender offer is conditioned on the issue of S$175 million of new convertibles by the settlement date and tenders for at least S$50 million principal amount of the convertibles under the offer.

Under the issue terms, the convertibles are redeemable if, at any time, the total principal amount is less than 10% of the amount originally issued. So, if holders tender more than S$109.75 million principal amount of the convertibles in the offer, the company may redeem the remaining outstanding notes at a price of 109.35% of par on Oct. 14.

The convertibles were issued on May 6 with a put option 2011, which was exercised for S$6.25 million of the bonds. From February 2010 to December 2011, the company repurchased S$217 million of the bonds.

CapitaCommercial is a Singapore-based real estate investment trust focusing on Singapore commercial buildings.

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