Singapore’s Frasers wraps tender, consent bid for 3.7%, 3.8% notes

By Susanna Moon

Chicago, Oct. 2 – Frasers Centrepoint Ltd. announced the results of wholly owned subsidiary FCL Treasury Pte. Ltd.’s tender offer and consent solicitation for its S$75 million 3.7% series 001 notes due 2019 and S$50 million 3.8% series 002 notes due 2022.

The offers ended at Oct. 2 at 3 a.m. ET for the series 001 notes and at 3:30 a.m. ET for the series 002 notes.

As announced Sept. 18, the issuer sought holder approval by extraordinary resolutions to amend the terms of each series to insert a call option to redeem the notes with at least seven business days’ notice.

Holders had tendered S$67.75 million principal amount, or 90.33%, of the series 001 notes and S$47.75 million principal amount, or 95.5%, of the series 002 notes.

In terms of the consent bid, investors cast voting instructions for S$68.25 million principal amount, or 91%, of the series 001 notes and S$48.25 million principal amount, or 96.5%, of the series 002 notes.

Based on those voting instructions, Frasers expects to meet quorum required for each meeting and the measure for each note series to pass, according to a company announcement.

The issuer is offering a purchase price of 102.85 for the series 001 notes, or S$257,125 for each S$250,000 principal amount, and 104.6 for the series 002 notes, or S$261,500 for each S$250,000 principal amount.

The issuer also will pay accrued interest to but excluding the redemption date.

The early consent deadline was 5 a.m. ET on Sept. 27.

The early consent fee is 0.25% of par, or S$625 for each S$250,000 principal amount. The normal consent fee will be 0.125% of par, or S$312.50 for each S$250,000 principal amount.

The company also said on Sept. 14 that it plans to price S$308 million of fixed-rate subordinated perpetual securities at par under its S$5 billion multicurrency debt issuance program.

The distribution rate is 3.95% initially. A step-up date is scheduled for Oct. 5, 2027, and the step-up margin is 100 basis points.

Deutsche Bank AG, Singapore Branch (65 6423 6656/8232/4091 or sg.csg@list.db.com) is the meeting agent for the consent solicitation. Oversea-Chinese Banking Corp. Ltd. (65 6722 2518 or liabilitymanagement@ocbc.com) is the dealer manager for the tender offers.

Frasers Centrepoint, a subsidiary of Frasers and Neave, Ltd., is a residential property developer and retail mall owner and operator in Singapore.

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