New Issue Review : Hong Fok Properties 4.75% 6Y this time.. Noble USD 5Y…
Nothing to say. 4.75%, 1 year longer, and interest rates 0.15% higher now than January.
Read my old comments here. No change in thoughts.
NEW ISSUE REVIEW : HONG FOK CORPORATION 5% 5Y BOND
Sorry for the error in coupon for the last review. The final coupon was revised lower.
Strike while the iron is hot despite the property cooling measures. Stock price off its highs.
Vague mentions that books are twice covered. Private bank clients taking 59% of it.
The good thing is that they cannot raise more than SGD 300 mio even if they wanted to.
Noble Group Baa3/BBB- should get 60-70% leverage. T+310 bp initial guidance to final price of T+290 to 295 bp (Cpn 3.75-ish) USD 300 mio deal size and books 2.8 bio.
Lets work that out to SGD terms. Should be about 3.6-3.65% roughly for 5Y without leverage.
Just thinking out loud, 3.6% could sell in SGD, I am sure.
I was informed this morning that my S$ 250,000 application (minimum possible) for the new issue Hong Fok 6 year paper will NOT receive any allocation. So it is obviously over-subscribed. My RM suggested going for the 5 year paper at 101.00. I declined – I’m not that hungry.
Greedy bankers not satisfied with their 25 cts commission prefer to hawk it to customers willing to pay above 100.
1. To be fair to him (the RM), the latest price I had for Hong Fok’s 5 year paper (4.75%) was in the 100.6 thru 100.7 range – even that price made me baulk. But yes – no doubt that he was applying an OTT brokerage.
2. I notice that Noble’s latest US$ paper offering (5 year tenor) has been put away successfully. 3.5/8% coupon – they put away US$ 400 Mln. My amateur view was that it was better for little-old-me to stay away from this particular offering. But a banker chum told me that the runners had QUOTE the easiest of tasks UNQUOTE to find more-than-enough subscribers. I don’t understand it – the market is nuts, IMHO.
3. Apparently First REIT is going to offer some debt paper soon – I’m not expecting any bargains.
Cheers (and thanks again for the high quality of this site),
Good on you.
Noble traded lower today after pricing at 99.268 last night. PB and retail made up 30% of the buyers but I suspect it was mainly the hedge fund flippers getting out.
Have not heard of First Reit issue. The new Suntec convertible style should be the way to go to capitalise on this bull run in stocks.
Good luck !