By Jennifer Chiou
New York, March 15 - Ruby Assets Pte., a special purpose vehicle of Ascendas Funds Management Ltd. and Ascendas Real Estate Investment Trust, priced an oversubscribed S$300 million offering of seven-year exchangeable collateralized securities to yield 1.6% with an initial conversion premium of 25%.
Talk put the yield at 1.6% to 2.1% with an initial conversion premium of 20% to 25%.
Citigroup Global Markets Singapore Pte. Ltd. is the bookrunner and lead manager of the issue that was oversubscribed by 4.5 times with participation from over 70 institutional investors.
Interest is payable semiannually.
The securities have an expected maturity date of Feb. 1, 2017 and a listed legal final maturity of Feb. 1, 2019.
The issuer intends to redeem the securities after seven years using the proceeds from the repayment of a collateral loan.
The exchangeables will have a cash settlement feature, being an option for the issuer to pay cash in lieu of delivering exchange units to satisfy the exchange right of the holder.
The securities have a put option on Feb. 1, 2015.
Each of the securities is exchangeable at anytime into A-REIT units up to the close of business on Jan. 23, 2017. The initial exchange price is S$2.45 per unit, a 25% premium to the March 15 closing price of S$1.96 apiece.
Proceeds of the offering will be used to refinance existing borrowings, to finance acquisitions, to develop A-REIT properties and for general working capital.
The issuer is applying to list the exchangeables and exchange units on the Singapore Exchange for exchangeable securities.
Ascendas is a business space and light industrial real estate investment trust with a diversified portfolio in Singapore.
| Issuer: | Ascendas Real Estate Investment Trust
|
| Issue: | Exchangeable collateralized securities
|
| Amount: | S$300 million
|
| Maturity: | Feb. 1, 2017 (expected); Feb. 1, 2019 (final)
|
| Manager: | Citigroup Global Markets Singapore Pte. Ltd.
|
| Coupon: | 1.6%, payable semiannually
|
| Price: | Par
|
| Yield: | 1.6%
|
| Exchange: | Until Jan. 23, 2017
|
| Exchange price: | S$2.45 per unit
|
| Conversion premium: | 25%
|
| Put: | Feb. 1, 2015
|
| Pricing date: | March 15
|
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