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Ezion to seek bondholders' approval to restructure debt on Nov 20

LIFTBOAT operator Ezion Holdings will seek approval from holders of S$575 million of bonds on Nov 20 to restructure the company's debt.

Ezion has set the early consent deadline at 5pm, Nov 15.

In relation to securities for series 003 to 007, which come due between 2018 and 2021, the company wants bondholders to accept a lower coupon and extended tenure, and either keep it as seven-year straight debt or as a six-year convertible bond.

For both options, the coupon rate is proposed at 0.25 per cent. The straight bonds will be callable after five years with an additional redemption premium.

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For the 008 series, which are subordinated perpetual securities, Ezion wants bondholders to accept a lower coupon and extended tenure, and either keep it as a 10-year straight bond or as convertible perpetual securities.

The coupon for those also stand at 0.25 per cent. The straight bonds will be callable after five years with an additional redemption premium. The convertible perpetuals are callable after seven years at face value, and will have a step-up coupon rate of one per cent per year after that.

Across the board for all convertible options, the early conversion price is S$0.2487 where bonds or securities are converted on or before 60 days after the effective or issue date. This represents a 10 per cent discount to the initial conversion price of S$0.2763, which will be the conversion price after 60 days, but on or before the sixth month after the issue or effective date.

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