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a-iTrust seeks bondholders' release of liabilities gearing covenant obligation
THE manager of Ascendas India Trust (a-iTrust) is seeking bondholders' release of its obligation to maintain a liabilities ratio to better align its covenants with its peers.
a-iTrust is asking holders of S$170 million in principal amount of bonds to delete a requirement that the issuer's consolidated total liabilities do not exceed consolidated unitholders' funds.
The trust will continue to observe covenants that prohibit consolidated total borrowings from exceeding 0.35 times the value of trust property; and that prohibit consolidated Ebitda (earnings before interest, taxes, depreciation and amortisation) from falling below two times the consolidated interest expense.
Noteholders who consent to the change before the business close of March 2 will receive an early consent fee. For holders of the S$25 million of notes due 2016, the early consent fee will be 0.05 per cent of the principal amount. The early consent fee of 0.2 per cent will apply for holders of the S$65 million of notes due 2018, S$50 million of 3.8 per cent notes due 2019 and S$30 million of 3.9 per cent notes due 2020.
Noteholders who tender their consent after the early deadline will receive 0.025 per cent of the principal for the 2016 notes and 0.1 per cent for all other notes.