Hyflux launches offer of up to S$300m perpetuals at 6%

WATER-TREATMENT firm Hyflux has launched an offer of up to S$300 million of perpetual capital securities (perps) paying out 6 per cent a year.

This rate is subject to reset or step-up from and including May 27, 2020, the company said in a Singapore Exchange filing on Tuesday morning.

It is offering up to S$230 million worth of perps to the public; up to S$20 million to directors, management and employees of Hyflux and its units; and up to S$50 million in placement to institutional and other investors.

If the public and placement tranches are oversubscribed, Hyflux may increase those tranches such that the total offer size grows to a maximum S$500 million, it said.

For these perps, Hyflux said distributions shall be payable semi-annually in arrears on May 27 and Nov 27 of each year, with the first payment of distributions scheduled to be made on Nov 27, 2016.

On or after the May 2020 distribution payment, however, the rate may be reset to the swap offer rate (SOR) on the relevant reset date plus an initial spread of 4.2 per cent per annum plus a step-up margin of 2 per cent per annum, Hyflux added.