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.
DISCREPANCIES BETWEEN UNAUDITED ACCOUNTS AND AUDITED ACCOUNTS * FINANCIAL
STATEMENT AND RELATED ANNOUNCEMENT
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)
- SGD Bond Alert : Swiber Glaring At Me (tradehaven.me)