SINGAPORE - Construction cum property developer Lum Chang on Thursday (Aug 30) invited holders of its outstanding $50 million 5.5 per cent notes due 2019 to exchange their notes for a "like principal amount" of Singapore dollar-denominated notes due 2021 that carry a higher coupon of 5.8 per cent.
The latter will come under its $300 million multicurrency medium term note programme.
This is to "provide the noteholders with an opportunity to remain invested in the group in view of the impending redemption of the existing notes" on March 28, 2019, it said.
As an incentive for early participation, the company will pay a one-time fee of 0.6 per cent of the principal amount of the relevant offered notes for valid offers submitted to the exchange by 5pm on Sept 19. Others that submit valid offers by noon on Sept 21, the expiration deadline, will be paid 0.3 per cent instead.
Lum Chang has appointed CIMB Bank Berhad to be the sole dealer manager in relation to the invitation and as the dealer for the new issue.