Oxley invites noteholders to exchange outstanding S$75 million fixed rate notes due Feb 2023

PROPERTY developer Oxley Holdings is inviting holders of its outstanding S$75 million fixed rate notes to exchange their existing notes for new notes to be issued at a higher coupon rate.

The existing notes are currently paying a 6.5 per cent coupon and are due to mature on Feb 28 this year.

Meanwhile, the new notes for exchange are expected to bear an annual interest rate of 7.5 per cent, with a maturity date falling on or about Aug 24, 2023.

They are expected to be issued on Feb 24, after the issuer announces the aggregate principal amount of the new notes around Feb 20.

The exchange consideration will be at S$250,000 in principal amount of the new notes, with accrued interest.

It comprises a principal amount of the new notes at 100 per cent of the principal amount of the offered notes which have been accepted for exchange, together with an amount in cash equal to the accrued and unpaid interest for offered notes accepted for exchange. 

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The cash portion of the consideration will be paid around Feb 24 when a global note certificate is also expected to be issued in respect of the new notes.

Existing noteholders will have until noon on Feb 17 to apply for the exchange, and pricing of the additional new notes is expected to be announced on or about Feb 20.

In a bourse filing on Monday (Feb 6), Oxley said its exchange offer comes in response to the interest of major noteholders who would like to extend their bond investment and remain invested in the group.

Additional new notes to be issued will be fungible and shall consolidate into the Series 003 notes, which are under the group’s US$1 billion guaranteed Euro medium-term note programme.

Shares of Oxley : 5UX 0% closed unchanged at S$0.14 on Friday.