THE Straits Trading Company : S20 0% has priced S$370 million worth of secured exchangeable bonds maturing Feb 13, 2028.

Net proceeds will be used for the group’s refinancing of existing borrowings, to finance working capital, as well as capital expenditure and investments. 

In a bourse filing on Tuesday (Jan 31), Straits Trading said that the bonds will carry an interest of 3.25 per cent per annum, payable on a semi-annual basis on Feb 13 and Aug 13 in each year starting from Aug 13, 2023.

The bonds initially comprise 100,253,182 shares of par value of US$0.001 each.

Bondholders will be entitled to receive a pro rata share of 67,738.6364 ESR Group shares for each S$250,000 principal amount of bonds, at the initial exchange price of HK$22.00 (S$3.69) for the exchangeables. 

The company will redeem each convertible bond at 100 per cent of its principal amount on the date of maturity, together with any accrued but unpaid interest.

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All the bonds are sold at 100 per cent of the principal amount.

The sole bookrunner for the issue of the bond is Goldman Sachs (Asia).

Shares of Straits Trading closed at S$2.40 on Monday, down 0.8 per cent or S$0.02.

Amendment note: This story has been edited to clarify that the bonds are exchangeable for shares of ESR Group