Tuan Sing launches tender offer for $141.7 million notes, proposes new issuance

SINGAPORE – Tuan Sing Holdings has launched a tender offer for $141.7 million notes at a consideration of 102 per cent of the principal amount in cash.

The invitation is part of its strategy to actively manage its debt capital structure by improving and extending its debt maturity profile and optimising financing costs, said the property developer on Tuesday.

Those notes under the $900 million multi-currency medium-term note programme at 6.9 per cent per annum coupon are due on Oct 18, 2024.

Tuan Sing said that the existing notes may only be offered for sale in principal amounts of $250,000 and integral multiples thereof. Under the all-in purchase consideration, note holders will receive 102 per cent of the principal amount, or $255,000 for each $250,000 of the existing notes.

This is on top of accrued interest on the existing notes from the last preceding interest payment date – excluding the settlement date, which falls on or about Nov 1, 2023.

The tender offer, which commenced at 9am on Tuesday, will expire on Oct 31 at 10am.

Separately, Tuan Sing also proposed to issue new Singapore dollar-denominated notes under the same $900 million programme. Its pricing will be announced on or about Oct 23.

The tender offer, together with the new notes’ issuance, will provide note holders with opportunities to remain invested in the group.

The group will give priority to note holders who wish to take part in both the invitation and the new issuance by “effectively facilitating the roll-over of their investments into the new notes”.

For those who have received an allocation of the new notes and validly tendered their existing notes for purchase in the offer, their offered notes will also be purchased in priority.

Note holders who wish to receive a preferential allocation of the new notes should contact a joint lead manager, through the tender agent – Tricor Barbinder Share Registration Services – and make a separate application to subscribe for the notes.

To be able to benefit from the invitation acceptance priority, a note holder will need to specify its new note allocation identifier at the submission time of the tender application form.

Tuan Sing also noted that the new notes will be offered only to institutional investors or accredited investors.

Net proceeds from the new issuance will be used for property development and investment, repayment and refinancing of debts, and general corporate purposes such as financing acquisitions and asset enhancement, said the group. Its shares ended flat on Tuesday at 28.5 cents.

THE BUSINESS TIMES