By Sarah Lizee
Olympia, Wash., Jan. 14 – Singapore Technologies Telemedia Pte. Ltd. said it priced S$350 million of 5% subordinated perpetual securities, according to a notice.
DBS Bank Ltd. and United Overseas Bank Ltd. are joint lead managers and bookrunners for the offering, which are expected to be issued on Jan. 17.
The securities will be issued in denominations of S$250,000 and have no fixed maturity.
Semiannual distribution payments will be at a rate of 5% per annum with the first distribution rate reset on Jan. 17, 2029 and subsequent resets occurring every 10 years onwards. The reset distribution rate will be the prevailing 10-year swap offer rate with respect to the relevant reset date plus the initial spread of 270.5 basis points, plus a step-up of 100 bps per annum.
The securities may be redeemed at par in whole but not in part on Jan. 17, 2024 or on any distribution date onwards.
The notes will be listed on the Singapore Exchange Ltd.
The notes are being issued under the company’s S$2 billion multicurrency debt issuance program established on Nov. 11, 2015.
Proceeds will be used for general corporate purposes, including refinancing of existing borrowings, working capital, capital expenditure and other general funding requirements.
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$350 million
|
| Maturity: | Perpetual
|
| Coupon: | 5%, resets Jan. 17, 2029 and every 10 years thereafter at swaps plus 270.5 bps plus a step-up of 100 bps per year
|
| Call option: | At par in whole but not in part on Jan. 17, 2024 or on any semiannual distribution date onwards
|
| Managers: | DBS Bank Ltd. and United Overseas Bank Ltd.
|
| Announcement date: | Jan. 14
|
| Settlement date: | Jan. 17
|
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