CapitaLand proposes to issue S$650m convertible bonds

CAPITALAND on Thursday proposed to issue S$650 million bonds that can be converted into new shares, to be placed with institutional and accredited investors.

The Singapore real estate company said it has appointed J.P. Morgan (S.E.A.) as the sole bookrunner, lead manager and underwriter for the bond issue.

The company plans to issue S$650 million in principal amount and may increase the size of the issue by up to S$150 million should an upsize option be exercised on or before June 30, 2015.

The terms of the convertible bonds will be confirmed upon the pricing of the issue, following the completion of a bookbuilding exercise by J.P. Morgan.

Pricing of the bonds is expected to take place on or about May 14, 2015.

The definitive terms of the bonds will be announced after that.

CapitaLand expects to use the proceeds of the issue mostly to refinance its existing indebtedness, including the repurchase of its outstanding convertible bonds, and any balance for working capital.

The closing date for the issue is expected to be on or about June 8, 2015.

Its announcement, made slightly two hours after it halted trading of its shares mid-day, caused a flurry of activity among market watchers hard-pressed to come out with possibilities as to what it may announce.

Its shares remain halted. They last traded at S$3.55, up one cent.

Read more: CapitaLand to buy back convertible bonds to cut 'outstanding indebtedness'