New Issue Review : Swiber Senior 4Y SGD 7.25% & What Happened to Ezra ?

Tell the truth guys !

When I wrote about Swiber senior perpetual a couple of months back, a few friends approached me to ask if the bond was worth a look at about 12% yield to call. I was ambivalent for several reasons.

1. Swiber has debt maturing this year for SGD 230 mio.
2. Their market cap is SGD 393.7 mio.
3. Swiber has difficulty raising >100 mio for longer dated papers.

Then they had that headline just last week.


Where some 30 mio in current receivables were transferred to long term receivables, amongst other changes.

What do we have today ?

*** SWIBER SGD 4YR ***

–   Swiber new SGD issue announced on the back of strong reverse inquiries
–   Tenure: 4 yrs
–   IPG: 7.25% area
–   Timing: This week’s business, as early as today

–   Swiber achieved record-high revenue of US$952.2M and net profit US$62.2M
for FY2012, the highest since its listing in 2006

–   Swiber continues to secure sizable contracts with orderbook of
approximately US$1.35bn as of Feb 2013


SWIBSP7 07/16: 100.50, 6.82%
EZRASP5 09/15: 102.00, 4.12%
EZISP5.25 05/15: 102.50, 4.00%
ASLSP4.75 03/17: 101.45, 4.35%

Selective dissemination indeed. Where is the Senior Perpetual in this list ?
The Swiber perpetual is a senior paper too and was marketed as recently as last week to my friend at >12% in yield to call, which is 09/2015 ! (even shorter than this paper)
Believe me, if Swiber does not redeem that perpetual in 2015, this bond is going to be in much deeper trouble.

You know what I say ? Just look at the book runners and you know who the target audience is.

And they are paying a hefty rebate to the private bankers to sell a senior paper that is hot on demand (almost as good as the rebate they got for selling the perpetual last year).

Anyhow, I bet that rebate will get alot of bankers and brokers pushing hard to their clients who will make it a self fulfilling success story of an issue.

Now can anyone tell me what happened to the Ezra subordinated perpetual ? It is offered at 95.00 today which makes it yield 11.15% to call date of 09/2015. (I guess no rebates there for re-selling eh ?)

Table of real comparables (prices unverified)

shipping bonds sgd

Strange times.