Singapore’s Tat Hong solicits consents for S$100 million of 4˝% notes

By Susanna Moon

Chicago, Nov. 30 – Tat Hong Holdings Ltd. said it began a consent solicitation for its S$100 million of 4˝% notes due 2018.

Tat Hong is seeking to amend note terms, as follows:

• An additional carve-out of the notes allowing any security created under any account charge executed by the issuer to secure the notes;

• The ratio of the consolidated EBITDA to consolidated interest expense will not be less than 3 times for any test period;

• Fixed-rate interest period will mean the period beginning on the interest commencement date and ending on but excluding the first interest payment date and each successive period beginning on and including an interest payment date and ending on but excluding the next succeeding interest payment date;

• Interest reserve balance will be defined to mean, in the case where the interest coverage ratio is less than 3 times but is not lower than 1 times for any test period, an amount equal to the interest payable on all the outstanding notes for one fixed-rate interest period, which is about S$2.25 million as long as the entire aggregate principal amount of the notes remain outstanding; and

• In the case where the interest coverage ratio is less than 1 time for any test period, an amount equal to the interest payable on all the outstanding notes for two fixed-rate interest periods, which is about S$4.5 million as long as the entire aggregate principal amount of the notes remain outstanding.

Oversea-Chinese Banking Corp. Ltd. is the solicitation agent.

Tat Hong is a Singapore-based supplier of cranes and heavy equipment.

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