Aspial Corp. said on Thursday it would buy back some of its notes due in 2018 and 2019 with a 10 basis point premium and to exchange some those notes for notes due in 2021.
“The group’s real estate business is expected to contribute significantly to the group’s revenue and profitability from fiscal year 2018 to fiscal year 2020 based on the expected completion and settlement of the group’s ongoing development projects in Singapore and Australia,” Aspial said in a filing to SGX before the market open on Thursday.
Aspial said it was planning to use part of the cash proceeds it has received or is expecting to receive from the real-estate business to purchase the notes, it said.
The offer to sell for cash for its outstanding 5.50 percent notes due 2018 in series 004 issued under its S$700 million multi-currency debt issuance program will be for an all-in purchase consideration of 100.10 percent of the principal amount, which includes the tender price, the consent fee and the accrued interest, it said.
The maturity date of those notes was 27 November, it said.
It also offered to sell for cash its outstanding 5.05 percent 2019 notes for an all-in-consideration of 100 percent of the principal amount, comprising 99.90 percent of the principal and a 10 basis point consent fee for early exit, Aspial said. The offer for the 2019 notes, which were due on 12 June 2019, was limited to S$10 million, although it added that it could increase the amount, the filing said.
The offer to exchange the 2018 and 2019 notes for a like principal amount of Singapore-dollar-denominated 6.25 percent notes due 2021 included the company paying an exchange fee of 0.50 percent of the principal amount, plus the accrued interest, it said.
The new notes were expected to be issued on 9 October, it said.
The offer, which began on Thursday, expires on 28 September 2018, it said.
Correction: This article was originally published on Thursday 13 September 2018 at 8:06 A.M. SGT; it has since been updated to reflect the correct premium in the lead.