Singapore's bond market has seen unprecedented defaults, and a slump in oil prices along with a weak property market are threatening to increase non-payments this year.
The following is a list of four firms that have Singapore dollar-denominated bonds maturing by the end of next year, and that Bloomberg's default-risk monitor suggests have the highest odds of failing to repay obligations in the next 12 months among the nation's companies that are not restructuring their debt.
To be sure, all four companies are meeting their obligations and their default odds are all below 10 per cent, according to the Bloomberg- compiled gauge, which is based on metrics such as share performance, liabilities and cash flow. They have default odds of 1.49 per cent to 7.27 per cent, the model shows.
Under Bloomberg's default-risk scale, a score from 0.52 per cent to 10 per cent indicates a company's debt would be high-yield, with distressed debt having a reading above 10 per cent.
Cash flow and debt figures below have been adjusted to ensure comparability across firms.
•Debt due: $40 million of 5.5 per cent bonds maturing on March 29, 2018
•Trailing 12-month adjusted operating cash flow: $11.4 million
•Adjusted total debt: $369.6 million
•Market capitalisation: $132.6 million as of June 6
The Singapore-based real-estate developer posted a net loss of $6.7 million last year, its second straight year of losses. Sales fell 30 per cent to $194.1 million, due to lower revenue in its construction, property development and investment divisions.
Mr Neo Tiam Boon, chief executive officer of the mainboard-listed property and construction company, said the firm has met semi-annual interest payments for its bond issue since its issue date.
"We are committed and have the financial resources to meet all our interest and principal payments for our series 2 bond issue, barring any unforeseen circumstances," said Mr Neo, referring to the securities due next year.
TA has sufficient resources in place to meet all its debt obligations, he added.
He said that while the Singapore residential and construction markets have been in a "prolonged downturn due to the sluggish economy", the firm is confident that it will eventually turn for the better.
Mr Neo said TA has recently closed an issue of warrants to existing shareholders to expand the company's equity.
The bonds due next year traded at 95.5 cents on the Singapore dollar yesterday, according to Bloomberg-compiled prices.
PACIFIC RADIANCE LTD
•Debt due: $100 million of 4.3 per cent bonds maturing on Aug 29, 2018
•Trailing 12-month adjusted operating cash flow: negative $14.9 million
•Adjusted total debt: $557 million
•Market capitalisation: $79.9 million as of June 6
The offshore vessels and support services firm posted a net loss of US$14.7 million (S$20.3 million) in the first quarter, widening from a net loss of US$6.8 million for the same period last year.
Sales fell by 24 per cent to US$14 million.
"Pacific Radiance will continue to work closely with lenders to ensure sustainability of its business at an appropriate debt level and are evaluating options on hand," said Ms Carol Chong, a representative at Oaktree Advisers, the external media company for Pacific Radiance.
In a May 12 exchange filing, Pacific Radiance said that improving the group's liquidity position remains a "key focus".
It added that a financial assistance plan announced by the Government last year provides assurance that funding options are available to offshore marine companies affected by the downturn.
The notes due next year traded at 20 cents on the Singapore dollar yesterday, according to DBS Bank prices.
Pacific Radiance's stock fell 4.5 per cent to an all-time low of 10.7 cents yesterday at 2.15pm.
FALCON ENERGY GROUP LTD
•Debt due: $50 million of 5.5 per cent bonds maturing on Sept 19, 2017
•Trailing 12-month adjusted operating cash flow: US$18.19 million (S$25.13 million)
•Adjusted total debt: US$229.7 million
•Market capitalisation: $55.7 million as of June 6
The marine and oil and gas services provider posted a net loss of US$10.2 million for the third quarter ended March 31, compared with a net income of US$557,000 a year earlier. Sales slumped 74 per cent due to declines in the oilfield and drilling services division and the marine division.
The firm has appointed KPMG Services as an adviser to conduct an independent business review and will hold an informal meeting of noteholders next Wednesday.
An external spokesman for Falcon Energy declined to comment. In a May 12 exchange filing, the company said the business environment "continues to be challenging due to intensified competition and clients' bargaining power".
Margins for vessel charter rates and fees for oilfield services are "razor-thin", the company said. Its key focus will be on cash preservation, strict financial control and having a strong balance sheet, Falcon Energy said in the filing.
The bonds due this year traded at 70 cents on the Singapore dollar yesterday, according to DBS Bank prices. Falcon Energy's stock fell by 1.5 per cent to an all-time low of 6.8 cents yesterday at 3.49pm.
TEE LAND LTD
•Debt due: $30 million of 6.5 per cent bonds maturing on Oct 27, 2017
•Trailing 12-month adjusted operating cash flow: negative $15.1 million
•Adjusted total debt: $214.9 million
•Market capitalisation: $89.4 million as of June 6
The residential and commercial property developer's net income slumped 95 per cent from a year earlier to $66,000 for its third quarter ended Feb 28.
"The bond maturity is something we are always mindful of and we believe we will be able to meet this obligation," said Mr David Ng, financial controller of Tee Land, in an e-mail on May 8. "We have resources, internally and externally, in place to meet this debt obligation."
In a March 27 exchange filing, Tee Land said the Singapore Government's cooling measures continue to curb demand, and it expects the local property market to remain "generally unchanged".
The firm also has a presence in Thailand, Malaysia, Australia and New Zealand, according to its website.
The company's notes due this year traded at 99.5 cents on the Singapore dollar yesterday, according to Bloomberg-compiled prices.