Aspial invites holders of S$100m 2018 5.5% notes to exchange for new notes

IN an update to holders of its S$100 million 5.5 per cent notes due in November 2018, Aspial Corporation on Tuesday said that it wants to provide noteholders "an opportunity to remain invested in the group in view of the impending redemption" by inviting them to exchange their existing notes for new notes.

As an incentive for noteholders to participate in the invitation, and also to reward noteholders who continue to support the group through their investments, the company will pay a one-time fee of 0.5 per cent of the principal amount of the relevant offered notes, representing the early exchange premium for offers submitted by 5pm on April 9, 2018 (the early exchange deadline), or 0.25 per cent for offers submitted by noon on April 13, 2018 (the expiration deadline).

The new notes will bear a higher interest rate of 5.9 per cent per annum payable semi-annually. In addition to the exchange of existing notes for new notes, the company also intends to issue additional notes for sale to investors, regardless of whether they are noteholders. This is subject to market conditions, and the additional notes will be fungible and will consolidate into the same series. More details will be given after April 13.

The company has appointed DBS Bank as the dealer for the new issue. The invitation will commence at 9am on March 27, 2018.