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Dyna-Mac floats proposal to noteholders

Thursday, September 8, 2016 - 10:13
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Module fabrication yard operator Dyna-Mac announced before trading began on Thursday that it is seeking noteholders' consent for a proposed call option and an offer to sell notes held for cash at a purchase price proposed by the company.

MODULE fabrication yard operator Dyna-Mac announced before trading began on Thursday that it is seeking noteholders' consent for a proposed call option and an offer to sell notes held for cash at a purchase price proposed by the company.

The company is calling for noteholders to respond by 10am on Sept 28 to the consent solicitation exercise pertaining to the S$50 million Series 001 medium term notes maturing in August 2017.

It is seeking approval by an extraordinary resolution of the noteholders to insert a call option as a new condition to the notes to enable the company to redeem all outstanding notes at 99 per cent of their principal amount, together with interest accrued from (and including) the last preceding interest payment date to (but excluding) the date fixed for redemption.

If the extraordinary resolution is passed, the company may, at its option by giving not less than five days' notice, redeem all of the notes on any day prior to the date falling 30 days after the date of entry of the second supplemental trust deed.

Noteholders who vote in favour of the extraordinary resolution will receive a consent fee of 0.10 per cent in principal amount of the notes. The payment of the consent fee is conditional, among others, on noteholders duly passing the extraordinary resolution, Dyna-Mac said.

In conjunction with the consent solicitation exercise for the call option, the company is inviting noteholders to offer to sell for cash at a defined purchase price, any and all of the outstanding notes held.

The proposed purchase price is 100 per cent of the principal amount of the notes.

OCBC has been appointed as the dealer-manager for the invitation to noteholders. Further details on the proposal and invitation are published in The Business Times and announced via SGXNet on Sept 8.

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