Maxi-Cash Financial Services expects to issue new $50 million 6.35 per cent three-year notes on July 22 at par.
These Series 002 notes comprise $26.5 million in notes to be issued in exchange for the company's existing Series 001 notes, plus $23.5 million in additional notes.
Earlier this month, Maxi-Cash had planned to exchange its outstanding $70 million in 5.5 per cent notes, due in April next year, for a like principal amount of new 6.35 per cent notes due in 2022.
Alternatively, holders could opt to sell their notes at par plus accrued interest for cash.
About $14 million of the existing notes were offered for sale, which the Catalist-listed pawnbroker will be buying, it said on Tuesday.
Maxi-Cash said it also received interest from its investors, including certain directors and/or controlling shareholders, for the company to issue $23.5 million in additional notes.
Maxi-Cash has priced the $23.5 million additional notes at 6.35 per cent - the same coupon rate as the $26.5 million notes to be issued in exchange for the existing notes due next year.
Net proceeds from the issue of the additional notes will be used to pay for Maxi-Cash's buyback of the $14 million in existing notes, to repay borrowings.
Certain directors and/or controlling shareholders have been allocated about 51 per cent of the $23.5 million additional notes.
Their combined holding may be a substantial amount of the Series 002 notes. Maxi-Cash will make an announcement on their aggregate subscription on or before the issue date.
The Series 002 unsecured and unsubordinated notes will be issued at 100 per cent of their principal amount and in denominations of $250,000 each.
They will mature on July 22, 2022.
About $29.5 million of the existing notes due next year that are not purchased or exchanged will remain outstanding with $4 million of this held by the company.
Maxi-Cash said its overall outstanding debt will not be increased.
The new notes are expected to be listed on the Singapore Exchange on or about July 23. The settlement date for the cash buyback of the $14 million in existing notes will be on or about July 24.
Maxi-Cash has about 40 outlets in Singapore for its pawnbroking operations, and the retail and trading of pre-owned jewellery and watches.
Its shares closed up 1.56 per cent at 13 cents yesterday.