You are here

Maxi-Cash to issue new S$50m 6.35% 3-year notes at par

MAXI-CASH Financial Services expects to issue new S$50 million 6.35 per cent three-year notes on July 22 at par, the Catalist-listed pawnbroker said in a bourse filing on Tuesday night.

These Series 002 notes comprise S$26.5 million in notes to be issued in exchange for the company’s existing Series 001 notes, plus S$23.5 million in additional notes.

Earlier this month, Maxi-Cash had planned to exchange any and all of its outstanding S$70 million in 5.5 per cent notes, due in April 2020, for a like principal amount of new 6.35 per cent notes due in 2022.

Alternatively, holders could opt to sell their notes at par plus accrued interest for cash. Some S$14 million of the existing notes were offered for sale, which Maxi-Cash will be purchasing, according to the Tuesday filing.

In addition to the exchange and buyback invitation, Maxi-Cash said it also received reverse-enquiry interest from its investors, including certain directors and/or controlling shareholders, for the company to issue S$23.5 million in additional notes.

Your feedback is important to us

Tell us what you think. Email us at

Maxi-Cash on Tuesday priced the S$23.5 million additional notes at 6.35 per cent – the same coupon rate as the S$26.5 million notes to be issued in exchange for the existing due-2020 notes.

Net proceeds from the issue of the additional notes will be used to pay for Maxi-Cash’s buyback of the S$14 million in existing notes, to repay existing borrowings of the group.

Certain directors and/or controlling shareholders of the company have been allocated about 51 per cent of the S$23.5 million additional notes. Their combined holding may thus be a substantial amount of the Series 002 notes, and Maxi-Cash will make a further announcement on their aggregate subscription on or before the issue date.

The Series 002 unsecured and unsubordinated notes will be issued at 100 per cent of their principal amount and in denominations of S$250,000 each, under the company’s S$300 million multicurrency medium-term note programme.

They will mature on July 22, 2022.

About S$29.5 million of the existing notes due in 2020 not purchased or exchanged will remain outstanding. Of this outstanding amount, S$4 million is held by the company.

Maxi-Cash said its overall outstanding debt will not be increased.

The new notes are expected to be listed on the Singapore Exchange on or about July 23. The settlement date for the cash buyback of the S$14 million in existing notes will be on or about July 24.

DBS Bank is the sole lead manager and bookrunner for the additional notes. It is also the sole arranger and dealer for Maxi-Cash’s S$300 million multicurrency note programme.

Maxi-Cash has about 40 outlets in Singapore for its pawnbroking operations, and the retail and trading of pre-owned jewellery and watches.

Its shares last traded on Tuesday at 12.8 Singapore cents.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to