Tuan Sing prices S$200m notes due 2024 at 6.9%
TUAN Sing Holdings T24 has priced S$200 million in notes due 2024 at 6.9 per cent, to be issued under its S$900 million multi-currency medium-term note programme established in Feb 2013.
The notes are expected to be issued on Oct 18, 2021 at an issue price of 100 per cent of the principle amount in denominations of S$250,000 each, and are due to mature on Oct 18, 2024. Certain controlling shareholders and directors of Tuan Sing will be subscribing to about 3.4 per cent of the offering.
Tuan Sing may redeem all of the new notes on any date after 18 Oct, 2023 at 102 per cent of the principal amount of the new notes, together with interest accrued to the date fixed for redemption.
Credit Suisse Singapore, DBS and UOB have been appointed the joint lead managers for the deal.
In a bourse filing on Tuesday (Oct 12), Tuan Sing said it intends to use net proceeds from the offering to finance the aggregate purchase price for its existing notes for its tender offer exercise launched on Oct 1.
Other uses of the proceeds include property development and investment, refinancing, as well as for general corporate purposes and general working capital requirements of the group.
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Tuan Sing said that under its new note offering, preference will be given to existing noteholders who participate in the tender offer exercise and subscribe for the new notes.
The group is seeking to purchase its outstanding 7.75 per cent Series 003 notes due 2022 from existing noteholders, at 102 per cent of their principal amount in cash.
Tuan Sing separately noted that the order book size for its new note offering was approaching S$300 million as at the close of business on Oct 11, putting it among "the largest (order books) for mid cap companies in recent months". The decision to cap the issuance at S$200 million was taken hours after this was observed, it added in in a press release issued on Tuesday (Oct 12).
Commenting on the note offering's investor turnout, the group's chief executive William Liem said: "I believe it shows that choppy market conditions notwithstanding, investors are very receptive to offerings from reputable companies with good track record and growth story, like Tuan Sing."
"The group is well placed to continue to capture opportunities to further accelerate growth and generate greater returns for all our stakeholders," he added.
Shares of the group were unchanged at S$0.48 as at 4.34pm on Tuesday, after the announcement was made.
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