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Aspen in US$11m convertible loan deal with Haitong
MALAYSIA-BASED property group, Aspen (Group) Holdings is seeking to raise US$11 million from a convertible loan for its investments in two associate companies and other development projects.
On Sunday, Aspen said that it has entered into an agreement with Haitong International Financial Products (S) Pte Ltd to raise US$11 million via a convertible loan agreement.
The 18-month term loan is pegged to an annual interest rate of 6.5 per cent and the loan interest is payable every six months.
The loan will go towards financing Aspen's investments in its associate company, Global Vision Logistics Sdn Bhd in Shah Alam, the construction of the Central Park located in Aspen Vision City, investment in associate company Bandar Cassia Properties (SC) Sdn Bhd, its other development projects and for working capital.
Haitong shall have the right to convert at any time during the loan tenure up to 50 per cent of the disbursed loan, in one or multiple tranches, into fully paid new ordinary shares of Aspen at a fixed conversion price of 35 Singapore cents per share. The agreed conversion price represents a premium of 59.1 per cent of Aspen's volume weighted average price of 22 Singapore cents on May 18.
Before the agreement with Haitong, Aspen had on April 30 agreed to allot and issue shares to Singapore-listed Oxley Holdings.
Assuming Haitong converts 50 per cent of the loan into shares, it will hold about 2.14 per cent of the enlarged share capital after the share placement to Oxley.
Aspen's executive director, president and group CEO, Murly Manokharan is providing a personal guarantee to the loan. He will pledge his shareholding representing 63 per cent of the entire equity interest of Aspen Vision Group in favour of the lender.
The lender is an investment holding company that is wholly-owned by Haitong International Securities Group (Singapore) Pte Ltd (HTI Group).
Aspen is also working with HTI Group and its investment banking arm on an exclusive basis for the latter to secure buyers or investors for the former's upcoming hotel projects, including the hotel to be developed in Aspen Vision City.
The convertible loan agreement is subject to, among others, Aspen having obtained approval from its shareholders.