CapitaLand to buy back convertible bonds to cut 'outstanding indebtedness'

CAPITALAND is inviting bondholders to tender their S$1 billion convertible bonds due 2022 for repurchase for cash, starting Friday.

The 2.95 per cent bonds were issued by the company in June 2007. As at May 14, 2015, the outstanding principal amount is S$1 billion.

The company said on Thursday that it plans to do the same for its S$1.3 billion 3.125 per cent convertible bonds due 2018 (outstanding principal amount: S$227.5 million) and S$1.2 billion 2.875 per cent convertible bonds due 2016 (outstanding principal amount: S$467 million).

CapitaLand plans to fund the consideration for the tender offers from the proceeds of its planned issue of S$650 million of convertible bonds announced earlier on Thursday. This issue is subject to an upsize option of another S$150 million in principal amount of new convertible bonds.

"The tender offers are being made by the company to reduce the principal amount of the outstanding indebtedness and ongoing debt service obligations of the company," it said.

Its shares remain halted on Thursday and were last traded at S$3.55, up one cent.