Advance SCT says BayCrest Int'l plans to subscribe for S$2m worth of its bonds

ADVANCE SCT said on Monday that BayCrest International Inc (BCI) plans to subscribe for S$2 million worth of redeemable convertible bonds (RCBs) that it is going to issue.

The Singapore-listed supplier of copper-related products said it entered into a non-binding memorandum of understanding (MOU) on July 19 with BayCrest, a company incorporated in the US.

The proposed RCBs placement by Advance SCT is part of a corporate exercise being contemplated that includes the capitalisation of debts held by several major creditors.

"Parties are still in negotiations as to the details of the proposed RCBs placement and will enter into a definitive agreement in due course,'' Advance SCT said.

The RCBs are expected to be valid for three years from the date of issuance and carry a coupon rate of 3 per cent per annum. The placement is conditional upon the completion of the debt capitalisation exercise.