By Kenneth Lim
Boston, May 17 - Singapore's Keppel Land Ltd. on Wednesday priced S$300 million seven-year convertible unsubordinated unsecured bonds at the tight end of talk, with a coupon of 2.5% and an initial conversion premium of 40%.
The convertibles were offered at par and have an initial conversion price of S$6.55 per share. Keppel Land shares closed at S$4.68 on Tuesday on the Singapore Exchange.
There offering size of S$300 million includes S$50 million of an over-allotment option that was immediately exercised.
Deutsche Bank was the bookrunner of the deal.
The convertibles are non-callable, and there is a put in the fifth year.
The convertibles have dividend and takeover protection, and Keppel Land has taken a negative pledge.
The notes will be listed in Singapore.
Keppel Land is the property development arm of Singapore-based Keppel Group conglomerate. It will use the deal's proceeds for general corporate purposes and to refinance existing debt.
| Issuer: | Keppel Land Ltd.
|
| Issue: | Convertible unsubordinated unsecured notes
|
| Bookrunner: | Deutsche Bank
|
| Amount: | S$300 million, including S$50 million greenshoe already exercised
|
| Maturity: | June 23, 2013
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 40%
|
| Conversion price: | S$6.55
|
| Cash settlement option: | Yes
|
| Dividend protection: | Conversion ratios will be adjusted if cash dividends exceed 1.05% of the average closing share price, 35% of the net profit and five cents per share.
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable for life
|
| Puts: | Year 5
|
| Pricing date: | May 17
|
| Settlement date: | June 23
|
| Listing: | Singapore Exchange
|
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