Aspial offers additional notes on investor interest

SINGAPORE - Aspial Corp is launching $20.75 million in additional notes under its $700 million multi-currency debt issuance programme at a coupon of 6.25 per cent following interest from its investors.

The notes, which are due 2021, add to an earlier tranche of $29.25 million in notes, taking the total under the Series 006 notes that will be issued to $50 million. The Series 006 notes are expected to be issued on Oct 11, and will be used to finance the general funding requirements or investments of the group, for working capital and for capital expenditure.

Following the new issue, the group said that its overall outstanding debt under the programme will be reduced by $3.5 million, after taking into account $24.5 million in 2018 and 2019 notes that have been repurchased by the group.

According to an earlier announcement, the company had issued an invitation for investors to either sell notes due 2018 (at a coupon of 5.5 per cent) and the notes due 2019 (at a coupon of 5.05 per cent) to the company, or to exchange existing notes for the Series 006 notes. Its outstanding debt under the programme will be reduced by a further $61 million when the remaining 2018 notes are redeemed by the company at maturity on Nov 27 this year. The company will be setting aside funds to redeem these outstanding 2018 notes.

DBS Bank has been appointed the sole lead manager and bookrunner for issuance of the additional notes, which will be in denominations of $250,000 and will bear interest of 6.25 per cent per annum, payable semi-annually.

"Certain controlling shareholders (and/or entities and/or persons related to them) have been allocated 84 per cent of the additional notes and will be subscribing for 66 per cent of the entire issue of the Series 006 notes, giving substantial holding to such controlling shareholders, entities and/or persons," the company added.

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