New Issue Review : Guocoland SGD Senior Perpetual NC 3Y

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*** GUOCOLAND SENIOR PERP-NC-3: UPDATE #1 ***

* NEW SENIOR PERP-NC-3 ANNOUNCED, ANCHORED BY SUBSTANTIAL INTEREST
* PX GUIDANCE AT LOW 5% AREA
* STRUCTURE: SENIOR PERP-NC-3, RESET IN YEAR 3 & EVERY 3 YEARS THEREAFTER,
STEPUP 100BP IN YEAR 3, CoC STEPUP OF 100BP, DIVIDEND PUSHER AND STOPPER
* TIMING: THIS WEEK’S BUSINESS, AS EARLY AS TODAY

** KEY COMPS
HPL 6.125 Subordinated NC 5 perp 103.50, 5.13%
HPL 3.9 2020 100.50, 3.82%
GUOLSP 4.1 2020 100.75 3.97%
GUOLSP 4.875 2016 103.75 3.46%

“But a 3 bio MTN programme, means they can borrow another 1.5 bio more if they like.” Quoting myself 1 week ago.

And they will be back for more.  And 5% ?? They used to pay 5% for SENIOR papers not SENIOR perpetuals !

The leverage worries me so the SENIOR PERP is a brilliant move because perpetuals are considered equity and it does not make their debt ratios look bad. Small price to pay for damage control.

Anyway I am wrong, market loves Guoco.

Issuer Name Coupon Maturity Bid Price Ask Px
GLL IHT Pte Ltd 4.1 13-May-20 125  mio 100.5 100.8
GLL IHT Pte Ltd 4.35 12-Sep-17 105 mio 101.5 102
GLL IHT Pte Ltd 4 25-Nov-14 100 mio 101.75 102.3
GLL IHT Pte Ltd 5 23-Feb-17 160 mio 103.75 104.3
GLL IHT Pte Ltd 4.25 23-Feb-15 260 mio 101.7 102.2
GLL IHT Pte Ltd 4.125 13-May-15 267 mio 101.6 102.1
GLL IHT Pte Ltd 4.875 11-Mar-16 333 mio 103.203 103.9
GLL IHT Pte Ltd 4 17-Jan-14 205 mio 100.8 101.3
But my opinion remains. Please read last week’s new issue review below.
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Category : Market, Rates/Bonds