Maxi-Cash to upsize its bond issue under exchange offer: Client note

Maxi-Cash outlet in Singapore’s Little India neighborhood; taken in October 2018.Maxi-Cash outlet in Singapore’s Little India neighborhood; taken in October 2018.

Maxi-Cash Financial Services plans to upsize its three-year 6.05 percent fixed-rate bond offering which was part of its offer to exchange its previous notes, according to a client note seen by Shenton Wire.

The pawnshop operator had said last week its tender offer to exchange its 6.35 percent notes due 2022 for the new notes had received S$23.25 million in principal acceptances.

The client note did not state either the previously planned size of the new bond offering or the quantum of the upsize.

The notes are being issued under Maxi-Cash’s S$300 million multi-currency medium-term note program

The net proceeds of the upsized amount will be used for general corporate purposes, including refinancing or repayment of existing borrowings, financing of investments, acquisitions, expansions, working capital and/or capital expenditure, the client note said.

Person(s) who are controlling shareholders or interested persons may take up a substantial portion of the offering, and may be able to control a vote outcome binding on all noteholders, the client note said.

Aspial Corp. controlled 62.54 percent of Maxi-Cash’s shares as of 16 December 2021, according to SGX data, while Koh Wee Seng had 10.47 percent. Koh Lee Hwee had 3.33 percent and Ko Lee Meng had 1.78 percent as of 13 December, the data showed.

The joint lead managers and bookrunners are CIMB Bank’s Singapore branch and DBS Bank, the note said.