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Eu Yan Sang seeks early redemption of bonds

Monday, May 23, 2016 - 22:02
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TRADITIONAL Chinese medicine Eu Yan Sang, which is currently the subject of a privatisation bid, is exploring refinancing options for its existing debt.

TRADITIONAL Chinese medicine Eu Yan Sang, which is currently the subject of a privatisation bid, is exploring refinancing options for its existing debt.

The group on Monday said that it is seeking the approval of debt holders for the amendment of the conditions of its 4.5 per cent notes due this year, of which S$23.6 million principal amount remains outstanding.

It hopes to include the option to redeem all - and not some only - of the notes by giving at least five business days' notice, at 100.5 per cent.

Eu Yan Sang has secured credit lines of up to S$190 million from DBS Bank on May 13 for refinancing, including an early redemption of the notes.

If approved by debt holders, it fully intends to exercise the call option, so that the notes will be redeemed before the call option long-stop date.

DBS Bank has been appointed the solicitation agent.

Last week , a consortium led by a UOB-backed fund, a Temasek Holdings unit and Eu Yan Sang International's group chief executive officer Richard Eu has launched a takeover bid for the group, offering 60 Singapore cents for each share in the family-controlled company it does not own.

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