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Pasdec sets exchange price for RM 150 million Rainbow Exchangeable Bonds
By Angela McDaniels
Seattle, Oct. 10 - Pasdec Holdings Bhd. said it fixed the exchange price for its proposed RM 150 million issue of Rainbow Exchangeable Bonds at RM 3.13 on Friday.
The issue will consist of two tranches: RM 15 million of five-year bonds exchangeable for up to 7.1 million Road Builder (M) Holdings Bhd. shares and RM 135 million of seven-year bonds exchangeable for up to 51,029,336 YTL Cement Bhd. shares.
The exchange price represents a 15% premium over the weighted average market price of RM 2.72 for Road Builder shares during the five days prior to Friday, the pricing date, and a 30% premium over the weighted average market price of RM 2.54 for YTL Cement shares during the same period, accoding to a company news release.
The bonds will be secured by a put option written by the state government of Pahang to acquire the shares at an agreed exchange price, a deposit of the shares with the trustee, assignment of escrow and debt service reserve accounts and deposit of the coupon payments payable during bond term or assignment of a letter of offer from a financial institution for an irrevocable standby line equal to the coupon payments.
Proceeds will be used to refinance part of the company's bank borrowings, to finance property development projects and for working capital requirements.
The issuance received approval from the company's board in January and the Malaysian Securities Commission in September. The issuance is still subject to approval from Pasdec shareholders.
OSK Securities Bhd. is the principal adviser, lead arranger and facility agent for the bonds. Pacific Alliance Capital Sdn. Bhd. is the financial and structuring adviser.
Pasdec is a property developer based in Pahang Darul Makmur, Malaysia.
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