Centurion offers $85m of notes for early exchange; invitation expires Jan 18

SINGAPORE - Centurion Corporation is inviting noteholders to exchange $85m of 5.25 per cent notes due 2020 for new $85m of 5.5 per cent notes due 2022, it said on Monday morning (Jan 7).

It will pay a 0.25 per cent exchange premium to noteholders who offer to exchange their notes by the expiration deadline and whose notes are accepted for exchange. The invitation begins at 9am on Jan 7 and will expire at 12nn on Jan 18.

Centurion said the move comes on the back of interest from major noteholders who want to extend their bond investment, in light of impending early redemption. Centurion intends to exercise its option to redeem all the outstanding existing notes on the interest payment date of April 12, 2019, a year ahead of the maturity date. Notice of this early redemption is expected to be given to shareholders between March 15 and 22.

Existing notes may only be offered for exchange in principal amounts of S$250,000 and multiples thereof. Those which are not exchanged are expected to be redeemed on April 12 at 100 per cent of their principal amount, together with interest accrued to but excluding April 12.

The coupon on existing notes will step up to 7.75 per cent if the notes are not redeemed by April 12, 2019. The coupon on the new notes will step up to 8.0 per cent if they are not redeemed by Feb 1, 2021.

The new notes are expected to have an issue date of Feb 1, 2019 and a maturity date of Feb 1, 2022.