Oxley Holdings has offered to buy back part of its S$150 million 5.70 percent series 002 notes due 2022 for cash at the face value, the property developer said in a filing to SGX Wednesday.
In addition, Oxley said it would re-open the issue of its existing S$70 million 6.90 percent notes due 2024, with the new issuance to be consolidated with the existing notes as series 004 under the US$1 billion euro medium term note program.
Some of the net proceeds of the new notes will be used for the buyback, but the amount of the buyback won’t exceed the gross proceed of the new issuance, the filing said. The proceeds of the new notes may also be used for working capital and capital expenditure, Oxley said.
Oxley said the purpose of the buyback was to reduce its outstanding short-term indebtedness and improve its debt structure.
In addition, the buyback will reward noteholders with priority to take part in both the buyback and the new notes, effectively facilitating the roll-over of their investments into the new notes, Oxley said.
The managers for the deal and the joint bookrunners for the new notes are Credit Suisse (Singapore), DBS Bank and HSBC’s Singapore branch, while the tender agent is Tricor Singapore, the filing said.
The invitation to participate in the buyback is expected to expire mid-day on 22 September, while the launch and pricing of the new notes is expected for 23 September, the filing said.