Singapore’s Keong Hong tenders, seeks consents for 6% notes due 2018

By Susanna Moon

Chicago, Aug. 22 – Keong Hong Holdings Ltd. said it began a tender offer and consent solicitation for its S$50 million 6% series 001 notes due 2018.

The company is inviting noteholders to sell any and all of their notes for cash and is asking holders to approve an amendment to the notes to add a call option.

The purchase price will be par with an early tender premium of 0.5%, an early consent fee of 0.5%, a normal tender premium of 0.25% and a normal consent fee of 0.25%, according to a company announcement.

Specifically, the early tender premium will be S$1,250 for each S$250,000 principal amount, the early consent fee S$1,250 per S$250,000, the normal tender premium S$625 per S$250,000 and the normal consent fee S$625 per S$250,000.

The earlybird deadline is 5 a.m. ET on Sept. 3, and the offer will end at 10:30 p.m. ET on Sept. 10.

Noteholders who receive the early tender premium will not receive the normal tender premium.

The tender and consent bid are being held alongside an offer of at least S$50 million new medium-term notes. The company said it expects to issue the new series 002 notes before the tender settles.

Proceeds from the new series 002 notes will be used to finance payment of consent fees, the aggregate purchase price and tender premiums for the series 001 notes tendered and accepted for purchase.

The company also intends to use funds from the series 002 notes to redeem any remaining series 001 notes not tendered under the offer. The series 001 notes would be called within 10 days of settlement of the tender offer.

If the consent proposal is not approved or the new notes are not issued, the consent fee will not be paid, the company noted.

Deutsche Bank AG, Singapore Branch (+65 6423 6656/8232/4091 or sg.csg@list.db.com) is the principal paying agent and tender agent. The Hongkong and Shanghai Banking Corp. Ltd. (+65 6658 8904, fax +65 6226 1669 or liability.management@hsbcib.com) is the dealer manager.

The series 001 notes were issued on June 15, 2015 under the company’s S$150 million multicurrency medium-term note program.

Keong Hong is a construction company based in Singapore.

© 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.