Catalist-listed pawnbroker Maxi-Cash Financial Services is offering to buy in cash up to $5 million in total principal amount of its outstanding 5.5 per cent notes due next year.
It is also offering to exchange these outstanding notes for a like principal amount of new 6.35 per cent notes due in 2022.
The existing notes mature on April 27 next year, with $70 million outstanding. Maxi-Cash and its subsidiaries hold $4 million in principal amount, the firm said yesterday.
Holders can sell their notes at par plus accrued interest for up to $5 million in total principal, although Maxi-Cash may increase this maximum acceptance amount.
The tender offer is part of Maxi-Cash's "ongoing capital management strategy to improve its debt position and to reduce negative carry", the company said.
Note holders can also exchange existing notes for new ones.
Maxi-Cash said issuing the new notes will allow it to extend its debt maturity profile and remain well capitalised for the next few years.
The new 6.35 per cent unsecured notes are expected to be issued on July 22 and mature on July 22, 2022.
The company will pay the accrued interest plus an exchange fee to holders who exchange their existing notes for the new notes. This fee will be an amount in cash equal to 0.75 per cent of the principal amount exchanged, for every $250,000 in principal amount.
Existing notes may only be offered for sale or exchange in principal amounts of $250,000 and integral multiples thereof. The offers expire at 10am on July 12.
Existing notes due in 2020 not purchased and cancelled or exchanged will remain outstanding.
Maxi-Cash has about 40 outlets in Singapore involved in pawnbroking operations as well as trading of second-hand jewellery and watches.