F&N bondholders pave way for Frasers Centrepoint listing
It can now proceed with planned split as bondholders accept sweetened terms
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CHRISTMAS came just in time for Fraser and Neave (F&N), which yesterday won over enough bondholders to split itself without triggering a technical default.
During meetings early yesterday, investors in the property and food-and-beverage (F&B) conglomerate's $108.25 million of 5.5 per cent notes due 2016 and $200 million of 6 per cent notes due 2019 agreed to waive their right to claim a default due to the split, and to give the company an early redemption option.
Bondholders had earlier rejected the initial offer, deeming the proposed call offer to be too low. F&N on Dec 6 raised its proposed early redemption terms by 375 to 600 basis points, offering to pay par plus 6.5 per cent and accrued interest for the 5.5 per cent notes and par plus 9 per cent plus accrued interest for the 6 per cent notes.
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