Taliworks to buy back RM 112 million of 2.25% convertibles due 2012

By Angela McDaniels

Tacoma, Wash., Dec. 21 - Taliworks Corp. Bhd. plans to repurchase RM 112 million principal amount of its RM 225 million of 2.25% convertible bonds due 2012, according to a company news release.

The repurchase will be made on Dec. 23 under an agreement reached with the bondholders on Dec. 17.

The company and the bondholders agreed to a purchase price of 106.57.

As of Sept. 30, RM 180.07 million of the proceeds from the sale of the convertibles had yet to be utilized. The repurchase will be funded using these remaining proceeds.

The repurchased convertibles will be canceled.

The company plans to issue RM 395 million of secured bonds due 2024 via special-purpose vehicle Destinasi Teguh Sdn. Bhd.

Part of the proceeds from the new bonds was going to be used to redeem half of the convertibles. However, the company decided to instead offer to purchase the convertibles due to a possible delay in the issuance of the new bonds.

The trust deed of the convertibles prevents the company from provided security for the new bonds without the approval of the convertible holders. The selling convertible holders have agreed to grant their approval.

When the new bonds are issued, the company will deposit RM 125.75 million in a designated bank account for the benefit of the bondholders. This amount is enough to pay 111.28 - the purchase price for the put option that falls on Dec. 6, 2010 - for the RM 113 million principal amount of convertibles that will remain outstanding following the repurchase.

Taliworks is an investment holding company based in Kuala Lumpur, Malaysia.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.