Malaysia's Bandar Raya plans to place RM 100 million bonds with warrants

By Angela McDaniels

Seattle, April 12 - Bandar Raya Developments Bhd. said it plans to issue up to RM 100 million of five-year bonds.

OCBC Bank (Malaysia) Bhd. will be the primary subscriber, according to a company news release.

Attached to the bonds will be up to 238,189,020 provisional rights to receive warrants, which will be detached from the bonds and allotted to ECM Libra Avenue Securities Sdn Bhd., who will then offer up to 214,370,118 of the rights at RM 0.10 each to existing Bandar Raya shareholders at a rate of nine rights per 20 ordinary shares held.

The remaining 23,818,902 rights will be placed with investors at a proposed issue price of RM 0.30 each.

Each warrant will allow the holder to purchase one Bandar Raya share and will become exercisable two years after the warrants are issued. They will then be exercisable for three years.

The proposed initial exercise price of the warrants is RM 1.10, which is a 50% discount to the five-day volume-weighted average market price of the Bandar Raya shares through April 11. The exercise price is subject to shareholder approval.

Proceeds from the bonds will be used for working capital, and proceeds from the warrants will be used for working capital and/or to redeem the bonds.

Kuala Lumpur, Malaysia-based Bandar Raya is a property developer and a manufacturer of chipboards and related products.

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