Keppel Reit prices S$200m of 5-year convertibles at favourable end of price range

Singapore

KEPPEL Reit has priced a S$200 million offering of five-year convertible bonds at the most favourable end of price talk for investors, suggesting tepid response to the deal.

The senior unsecured bonds will be sold at 100 per cent of their par value and bear a coupon of 1.9 per cent, which is the high end of the 1.7 per cent to 1.9 per cent range indicated during marketing, the commercial real estate investment trust (Reit) announced on Tuesday. The initial conversion premium of 12.5 per cent over Tuesday's closing price represents an initial conversion price of S$1.4625, which is on the cheap end of the indicated range of S$1.4625 to S$1.5275. Keppel has chosen not to upsize the deal by an additional S$50 million.