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Pacific Radiance's noteholders to redeem notes via cash-and-equity option

OFFSHORE support vessel group Pacific Radiance, which is currently undergoing debt restructuring, said on Tuesday evening that all outstanding S$100 million of 4.3 per cent notes due Sept 30, 2019 will redeemed by noteholders via the first option in its debt restructuring proposal.

Under the first option, noteholders will receive S$37,500 in cash and 2.104 million Pacific Radiance shares for every S$250,000 of notes held. They will also receive warrants pegged at an exercise price of 2.8 Singapore cents.

A second option involving convertible bonds was also listed in its proposal, but Pacific Radiance said that the election forms it has received for that option comprised less than the stipulated minimum of S$5,000,000 in principal amount of outstanding notes.

Hence, noteholders who have elected for option 2 or have not submitted the election form will be deemed to have elected to redeem their notes via option 1.

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Under the convertible bond option, noteholders would have received S$250,000 of 0.25 per cent nine-year convertible bonds for every S$250,000 of straight bonds held. The convertibles will have an initial conversion price of S$0.112 per share, and the coupon will step up at 25 basis points after every three years. They would also have received warrants as in the first option.