AusGroup to hold second informal meeting with holders of $110m of 8.45% notes due in October

SINGAPORE - AusGroup will be conducting its second informal meeting with noteholders on June 18, in relation to the consent solicitation exercise it plans to launch for its $110 million of 8.45 per cent notes due October 2018, the construction engineering company announced on Wednesday (June 6).

Its first informal meeting with noteholders was conducted on May 16.

The second meeting will be facilitated and moderated by the Securities Investors Association (Singapore), the investor advocacy group also known as SIAS.

The agenda of the upcoming meeting is to provide noteholders with a summary of a consent solicitation exercise relating to the notes, respond to queries raised by noteholders in the first meeting, and to give an update on the formation of the independent steering committee of noteholders, AusGroup said.

The notes, which were issued in 2014 under a $350 million multicurrency programme, originally bore a coupon of 7.45 per cent with a maturity in 2016. Following a consent solicitation exercise in 2016, noteholders agreed to extend the maturity of the bonds to 2018 while stepping up the coupon. The coupon was increased to 7.95 per cent from October 2016 to 2017, and to the current 8.45 per cent after October 2017.

Shares in AusGroup closed flat at 4.3 cents apiece on Tuesday.