OUE prices S$304.75m concurrent offering of 5-year convertible, exchangeable bonds

SINGAPORE - OUE has priced a S$304.75 million concurrent offering of five-year convertible and exchangeable bonds.

The property developer announced it is pricing S$154.75 million of convertible bonds due Apr 13, 2023 at a coupon of 1.5 per cent, convertible into new shares at an initial conversion price of S$2.112 per share.

The conversion price represents an initial conversion premium of 10 per cent over the property developer's S$1.92 close on Tuesday (March 13).

The company will redeem each convertible bond at 105.29 per cent of its principal amount on the date of maturity, together with any accrued but unpaid interest.

It has also priced S$150 million in exchangeable bonds due 2023, at a coupon of 3 per cent, exchangeable into stapled securities of OUE Hospitality Trust, with each security comprising one unit each in OUE Hospitality Real Estate Investment Trust, and OUE Hospitality Business Trust.

The initial exchange price of S$0.957 for the exchangeables is also 10 per cent over OUE Hospitality Trust's S$0.87 close on Tuesday.

All the bonds are sold at 100 per cent of the principal amount.

The sole bookrunner for the issue of both bonds is HSBC Singapore.

OUE said that proceeds from the bonds will be used towards general corporate purposes and refinancing of existing debt obligations.