Tuan Sing prices S$150 million notes due 2027 at 7.5%
TUAN Sing has priced S$150 million of notes at 7.5 per cent under its S$900 million multi-currency medium-term note programme.
The new notes are expected to be issued on Nov 2 in denominations of S$250,000 each, with interest to be paid semi-annually in arrear. They are expected to mature on Nov 2, 2027.
Tuan Sing may redeem all – but not some – of the notes after Nov 2, 2026, at 102 per cent of the principal amount, together with interest accrued to the date fixed for redemption.
Controlling shareholders, directors and related entities or parties of Tuan Sing will be subscribing to less than 10 per cent of the new notes.
DBS, Deutsche Bank (Singapore) and UOB were appointed joint lead managers for the deal.
On Tuesday (Oct 24), Tuan Sing said net proceeds from the issuance will be used to finance the aggregate purchase price for the group’s outstanding 6.9 per cent notes due 2024, for which the property developer launched a tender offer to redeem at 102 per cent of the principal amount in cash.
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On Oct 17, the group launched a tender offer for its S$141.7 million notes due Oct 18, 2024, while also proposing to issue new Singapore-dollar denominated notes.
Priority will be given to existing noteholders who wish to take part in both the invitation and the new issuance by “effectively facilitating the roll-over of their investments into the new notes”.
This was part of Tuan Sing’s strategy to actively manage the group’s debt capital structure by improving and extending its debt maturity profile and optimising financing costs.
Shares of Tuan Sing were up S$0.01 or 3.7 per cent at S$0.28 as at the midday trading break on Tuesday, before the announcement.
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