Suntec Reit redeems and cancels convertible bond issue due 2018

SUNTEC Real Estate Investment Trust (Suntec Reit) has redeemed S$275 million of the principal amount of the convertible bonds plus accrued interest on March 18, following the exercise of the put option by the convertible bondholders.

As a result, the convertible bonds, which were due 2018, have been cancelled, leaving S$5 million in principal amount of the bonds issue outstanding, said Suntec Reit manager ARA Trust Management in an announcement to the Singapore Exchange.

Suntec Reit will exercise the clean-up call to redeem the outstanding principal amount plus interest accrued up to the date of redemption on April 22, which will be funded in cash from internal resources and is not expected to have any material impact on its cash flow.

The conversion price of the convertible bonds as at March 16 is S$2.042. The closing price of the units in Suntec Reit on the Singapore Exchange on March 18 was S$1.70 per unit.