SINGAPORE - LCD Global Investments has proposed a renounceable rights issue to raise up to $105.4 million in convertible bonds.
The five-year bonds, which bears an interest of 2.5 per cent a year, will be offered on the basis of 100 for every 1,000 shares owned.
LCD has appointed HL Bank Singapore to manage the rights issue.
Subscribers may convert the bonds to shares by paying a conversion price of 25 cents apiece during the life of the bond.
If they are not converted, LCD will redeem them at the issue price on maturity.
The bulk of the proceeds from the rights issue will be used to enhance existing assets, particularly those related to hotels and resorts, and serviced residences as well as for business acquisitions.
The remainder is earmarked for general working capital purposes.
JTrust Asia, which owns 29.5 per cent of LCD, has undertaken to subscribe in full its entitlement under the rights offer. It will also mop up any bonds that are not taken up by other shareholders, to demonstrate its commitment to LCD.