By William Gullotti
Buffalo, N.Y., Oct. 28 – Singapore Technologies Telemedia Pte. Ltd. priced a S$500 million offering of 4.2% subordinated perpetual securities, according to an announcement on Thursday.
The securities are issued under the company’s S$2 billion multicurrency debt issuance program.
The company may opt to redeem the securities in whole, but not in part, at par plus accrued interest starting May 3, 2029.
Semiannual distribution payments will be at a rate of 4.2% per annum with the first distribution rate reset on May 3, 2029 and subsequent resets occurring every seven years onwards. The reset distribution rate will be the seven-year SORA-OIS rate with respect to the relevant reset date plus an initial spread of 274.8 basis points, plus a step-up of 100 bps per annum.
DBS Bank Ltd., United Overseas Bank Ltd., Credit Suisse (Singapore) Ltd. and HSBC Ltd. are the joint lead managers and joint bookrunners for the offering.
Proceeds from the issuance will be used for financing general corporate funding requirements or investments of the issuer, its subsidiaries and/or associated companies.
The securities are expected to be issued Nov. 3 and listed on the Singapore Exchange effective Nov. 5.
Singapore Technologies Telemedia is a Singapore-based investment holding company focused on communications, media and technology.
| Issuer: | Singapore Technologies Telemedia Pte. Ltd.
|
| Issue: | Subordinated perpetual securities
|
| Amount: | S$500 million
|
| Maturity: | 2024
|
| Bookrunners: | DBS Bank Ltd., United Overseas Bank Ltd., Credit Suisse (Singapore) Ltd. and HSBC Ltd.
|
| Coupon: | 4.2%, resets May 3, 2029 and every seven years thereafter at SORA-OIS plus 274.8 bps plus a step-up of 100 bps per year
|
| Call option: | Starting May 3, 2029 in whole, but not in part, at par plus interest
|
| Announcement date: | Oct. 28
|
| Issue date: | Nov. 3
|
| Listing date: | Nov. 5
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