CapitaLand successfully completes the issuance of S$650 million seven-year convertible bond issue and repurchase of outstanding bonds
- Achieved attractive coupon of 1.85% and high conversion premium of 32.6%
- Longest tenor convertible bond in Asia Pacific ex-Japan since 2009
- Concurrent repurchase of S$492.5 million 2018 convertible bonds and S$229 million 2016 convertible bonds
Singapore, 20 June 2013 – CapitaLand Limited (CapitaLand) is pleased to announce that it has successfully issued unsecured convertible bonds (Bonds), raising gross proceeds of S$650 million, and concurrently completed a repurchase of a total of S$721.5 million in principal amount of
The Issue (Issue), which was priced on 20 May 2013, achieved a tenor of seven years and attractive pricing with a conversion premium of 32.6%.
The Bonds are convertible into new CapitaLand ordinary shares at a conversion price of S$5, which is a 32.6% premium
Concurrent with the issue, CapitaLand repurchased for cash S$432.5 million in principal amount of its 3.125% convertible bonds due 2018 (2018 Bonds) pursuant to a tender offer from 21 May 2013 to 11 June 2013 (Tender Offer), along with open market repurchases of an additional S$60 million in principal amount of 2018 Bonds and S$229 million in principal amount of its 2.875% convertible bonds due 2016 (together with the Tender Offer, the Bond Repurchase).
The Tender Offer was launched concurrently with the Issue on 20 May 2013. On 14 June 2013, CapitaLand announced that it had received valid tenders of S$619.75 million in principal amount, and accepted S$432.5 million in principal amount to be repurchased at the Tender Offer clearing price of 111.5%. The Tender Offer clearing price of 111.5 % is at a 1% premium above the market price of the 2018 Bonds immediately prior to the announcement of the launch of the Tender Offer. The
Combined with the Issue, the Bond Repurchase effectively lengthens the average maturity of CapitaLand’s outstanding debt and reduces its interest expense, while also
Credit Suisse (Singapore) Limited and Merrill Lynch (Singapore) Pte. Ltd. were the joint
Summary of Convertible Bond Terms
- Deal size: S$650 million
- Initial conversion price: S$5
- Conversion premium against closing price: 32.6%
- Coupon: 1.85% per annum
- Maturity Date: 19 June 2020
Summary of the Tender Offer
- Total amount of valid tenders: S$619.75 million
- Final acceptance size: S$432.5 million
- Clearing price: 111.5%