KS Energy to issue bonds worth about S$80 million

Mr Kris Wiluan, chairman and chief executive officer of KS Energy.
Mr Kris Wiluan, chairman and chief executive officer of KS Energy.PHOTO: THE BUSINESS TIMES

SINGAPORE - Singapore-listed KS Energy, a drilling and rig management firm, said it entered bond purchase and warrant subscription agreements with several parties on Friday.

It proposed to issue S$80.15 million worth of fixed-rate secured bonds due 2020, and about 80 million non-listed bonus warrants, to be issued to the lenders.

The closing date of the issue is expected to be on June 21.

The proposed bonds issue will be completed the same time as the proposed warrants issue.

The lenders, including OCBC and private firm Pacific One Energy, are holding S$45 million of convertible bonds.

A condition for the bonds issue is for KS Energy to buy back the existing convertible bonds from the lenders.

In April, the firm said it was in talks with bondholders and a shareholder to roll over S$74.9 million in debt, to avoid triggering cross default clauses on other borrowings of S$343 million.

In March, KS Energy asked to push back the maturity on S$45 million of convertible bonds originally due in March last year to this June, for the fifth time in 12 months back then.