Oxley offers to buy back 5.7% notes due 2022; reopens issue of 6.9% notes due 2024

SINGAPORE (THE BUSINESS TIMES) - Oxley Holdings is offering to purchase in cash a portion of its outstanding 5.7 per cent notes due 2022.

The property developer is also proposing to issue new notes by reopening its existing 6.9 per cent notes due 2024 worth $70 million, to finance the purchase of the outstanding notes and for general corporate purposes, including the refinancing of borrowings and working capital and capital expenditure requirements of the group, its joint ventures and its associates.

The purpose of the tender offer is "to reduce the amount of the guarantor's outstanding consolidated short-term indebtedness and enhance the guarantor's outstanding consolidated indebtedness structure", the group said in a bourse filing on Wednesday morning (Sept 8).

Oxley is looking to purchase the notes at 100 per cent of its principal amount of $150 million, together with accrued and unpaid interest on the notes, at an amount no greater than the gross proceeds from the issue of the new notes.

The notes may only be offered for sale in principal amounts of $250,000 and integral multiples thereof.

Oxley will also consolidate its existing 6.9 per cent notes with the new issue to form a single series.

The issue will reopen at 100 per cent of its price together with the accrued interest of the existing series from the issue date, with a coupon of 6.9 per cent payable semi-annually in arrear.

Noteholders who wish to subscribe for the new notes, on top of selling their notes as part of the invitation, may receive the new issue priority in the allocation of the new notes.

Noteholders who are subscribed for and receive an allocation for the new notes, on top of tendering their notes for purchase, will also receive priority of acceptance to the invitation.

The invitation to the offer will commence on Sept 8 at 9am and expire on Sept 22 at 12pm, and the launch and pricing of the new notes is expected to be on or around Sept 23.

Oxley also expects the result date of the invitation to be on or around Sept 24, and the settlement date and reopening to be on or around Sept 30.

The dealer managers of the invitation and the joint bookrunners of the proposed issue of the new notes are Credit Suisse Singapore, DBS and HSBC Singapore, while Tricor Singapore, which trades as Tricor Barbinder Share Registration Services, is the tender agent.

Oxley shares were trading at 22 cents, down 0.5 cent or 2.2 per cent, at 9.25am after the announcement on Wednesday.