Strategic Funding Supports Growth and Refinancing Goals
Tuan Sing Holdings has successfully priced S$200 million in notes due 2024 at a coupon rate of 6.9 per cent. The issuance is part of the company’s S$900 million multi-currency medium-term note programme, first established in February 2013.
Details of the Note Issuance
The notes, scheduled for issuance on Oct 18, 2021, are set to mature three years later on Oct 18, 2024. Key features include:
An issue price of 100 per cent of the principal amount.
Denominations of S$250,000.
A redemption option available from Oct 18, 2023, at 102 per cent of the principal amount, plus accrued interest.
Credit Suisse Singapore, DBS, and UOB served as joint lead managers for the transaction.
Utilisation of Funds
Proceeds from the issuance will support various strategic initiatives, including:
Financing the tender offer for Tuan Sing’s 7.75 per cent Series 003 notes due 2022.
Property development and investment activities.
General corporate purposes and working capital needs.
Preference for Existing Noteholders
Tuan Sing has prioritised existing noteholders participating in the tender offer for its 2022 notes, offering to repurchase these notes at 102 per cent of their principal amount in cash.
Strong Market Reception
As of Oct 11, the order book for the offering neared S$300 million, reflecting strong demand from investors. This prompted the company to cap the issuance at S$200 million.
Chief Executive William Liem noted that the investor turnout underscores confidence in Tuan Sing’s robust track record and growth potential. “This demonstrates our ability to attract support even in choppy market conditions,” he said, emphasising the group’s readiness to leverage opportunities for accelerated growth and enhanced returns for stakeholders.
Shares of Tuan Sing remained steady at S$0.48 as of 4:34 PM on Tuesday following the announcement.
