Aspial Corp is launching $20.75 million in additional notes under its $700 million multi-currency debt issuance programme at a coupon of 6.25 per cent following interest from its investors.
The notes, which are due in 2021, add to an earlier tranche of $29.25 million in notes, taking the total under the Series 006 notes that will be issued to $50 million. The Series 006 notes are expected to be issued on Oct 11, and will be used to finance the general funding requirements or investments of the group, for working capital and for capital expenditure.
Following the new issue, the group said that its overall outstanding debt under the programme will be reduced by $3.5 million, after taking into account $24.5 million in 2018 and 2019 notes that have been repurchased by the group.
In an earlier announcement, the company had issued an invitation for investors to either sell notes due in 2018 (at a coupon of 5.5 per cent) and the notes due in 2019 (at a coupon of 5.05 per cent) to the company, or to exchange existing notes for the Series 006 notes. Its outstanding debt under the programme will be reduced by a further $61 million when the remaining 2018 notes are redeemed by the company at maturity on Nov 27 this year. The company will be setting aside funds to redeem these outstanding 2018 notes.
DBS Bank has been appointed the sole lead manager and bookrunner for issuance of the additional notes, which will be in denominations of $250,000 and will bear interest of 6.25 per cent per annum, payable semi-annually.
A wholly owned subsidiary of mainboard-listed Serial System, Serial Microelectronics, will have its distribution agreement with major supplier Texas Instruments (TI) terminated on Dec 31, 2018, Serial System announced late on Tuesday.
The authorised distributor of electronic components added it is in ongoing discussions with TI - an American semiconductor firm - to work out the arrangements for the cessation of the business relationship, and that it is concurrently considering a potential sale of its TI distribution business.
Serial Systems noted that its TI distribution business contributed revenue of around US$442.5 million (S$608 million) and US$707.5 million comprising 54 per cent and 47 per cent respectively of the group's revenue for the half year ended June 30, 2018 and financial year ended Dec 31, 2017.
Serial System's counter last traded at 13.3 Singapore cents.