Maxi-Cash to launch S$36.75 million more in 6.05% notes due 2025 after investor interest

Annabeth Leow

Published Mon, Jan 17, 2022 · 11:20 PM

CATALIST-LISTED pawnbroker Maxi-Cash Financial Services Corp is launching another S$36.75 million in Series 003 Notes, after "interest from its investors", the board has said.

The new set of 6.05 per cent notes due 2025 will be issued on Jan 24 and, combined with the initial notes announced earlier this month, will take the final aggregate principal amount of the Series 003 Notes to S$60 million, the board said on Monday (Jan 17).

Maxi-Cash disclosed that investors - including some directors and controlling shareholders or their associates - had shown interest in launching more notes under the issue, which is part of the group's S$300 million multi-currency medium-term programme.

Such investors have been allocated some 42.9 per cent of the extra notes - which takes their share of subscription to a substantial 40.4 per cent of the entire Series 003 Notes issue.

Series 003 Note holders also have the option to require Maxi-Cash to redeem their notes if chairman Koh Wee Seng and his siblings Ko Lee Meng and Koh Lee Hwee no longer have a combined shareholding interest of more than 50 per cent in the company.

Net proceeds from the issuance of the latest set of notes will be used for general corporate purposes, such as refinancing or repayment of borrowings, as well as investments, acquisitions, expansions, working capital and/or capital expenditure requirements, the board added. CIMB and DBS have been appointed the joint lead managers and bookrunners.