REAL estate company Heeton : 5DP 0%is inviting holders of its 6.8 per cent fixed-rate notes due November 2023, to exchange their outstanding S$62.7 million of existing notes for new notes due November 2026.

For each S$180,000 of the existing notes, Heeton is offering S$200,000 of new notes at a higher coupon rate of 7 per cent.

The new notes are expected to be issued on May 2, 2023, and shall be redeemed in full on their maturity date, which is expected to fall on or around Nov 2, 2026.

The exchange consideration will also include a cash top-up of S$20,000 for each S$180,000 in the principal amount of the existing notes.

This must be transferred to the cash top-up account via bank transfer; payments by cheque or any other mode will not be accepted.

Heeton on Thursday (Mar 30) said that its offer will allow noteholders to remain invested in the group, and comes as part of its “prudent capital management strategy” to term out its debt maturity profile.

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The invitation will start at 9 am on Thursday and expire at 4 pm on Apr 19, with the early exchange deadline being 5 pm on Apr 14.

Noteholders who apply to exchange their existing notes after the early exchange deadline, but prior to the invitation’s expiration, will not be eligible to receive an early exchange fee of 0.5 per cent of the principal amount.

Instead, they will receive a normal exchange fee of 0.25 per cent of the principal amount on the settlement date, which is on or around May 2, 2023.

Shares of Heeton ended Wednesday flat at S$0.255.