SINGAPORE - Mainboard-listed Courts Asia is offering to buy back its $75 million worth of 5.75 per cent notes due 2019 at 100.75 per cent of the principal amount.
The electronics and furniture retailer is concurrently seeking noteholders' consent to include a call option in the terms of the notes that will allow Courts Asia to redeem the bonds early at 100 per cent of par. The issuer plans to exercise that option within 15 days if it is successfully included.
Noteholders who deliver their consent to the inclusion of the call option by the business close of July 13 will receive an early consent fee equal to 0.25 per cent of the principal amount. Consent received after their early-bird deadline will receive a normal consent fee of 0.15 per cent.
The company has called for a noteholders' meeting at 10am on July 20 to vote on the proposal.
Courts Asia said the proposed transaction is part of its continuing capital and liability management initiatives. It is also of the view that it is prudent to explore the early redemption of the notes since it has "existing surplus cash".
DBS is the dealer manager for the solicitation.
Courts Asia common stock last traded flat at 21 cents apiece on Wednesday.