Chip Eng Seng redeems around S$206 million in notes after change of control

Singapore two-dollar bills

Chip Eng Seng said on Tuesday that it redeemed and cancelled around S$206 million of its notes after the change of control of the company triggered a put option giving noteholders the option to require redemption.

In October, Chip Eng Seng said that it received notification from seven shareholders that they entered a deal with Celine Tang to sell an around 29.73 percent stake in the company.

Chip Eng Seng redeemed S$107 million in aggregate principal amount of its series 002 notes and S$99.75 million of its series 003 notes on Tuesday, the company said in a filing to SGX after the market close on Tuesday. The redeemed notes were also cancelled on the same day, it said.

The put option allowed the redemption for 100 percent of the principal amount and interest accrued through the date fixed for redemption, which was Tuesday, it said.

After the cancellation of the redeemed notes, the aggregate outstanding principal amount of the series 002 and 003 notes were S$13 million and S$25.25 million, respectively, Chip Eng Seng said.

The series 002 and 003 notes were issued under its S$750 million multicurrency debt issuance program, the company has said previously. The series 002 was for S$120 million 4.75 percent notes due 2021 and the series 003 was for S$125 million 4.90 percent notes due 2022, it has said.

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