New SGD Issue : Tat Hong 5Y
*** NEW ISSUE: TAT HONG HOLDINGS LTD SGD 5YR ***
Issuer : Tat Hong Holdings Ltd (“TAT”)
Status : Direct, unconditional, unsubordinated and unsecured
Rating : Unrated
Format : Reg S, S274 & 275 of Singapore SFA off SGD500 million MTN Programme
Tenor : 5 Years
Issue Size : TBD
Initial Price Guidance : 4.75% area
Payment : Semi-annual, actual/365 (fixed)
Details : SGD250K/Multicurrency MTN Programme/Singapore Law/CDP
Listing : SGX-ST
Wholesome name.
But UOB just came out at 4.9% !
TAT HONG SGD 5YR UPDATE
– Books are approaching S$500MM
– Final Price Guidance: 4.50% (the number)
– Issue Size: SGD 100MM (will not grow)
– Timing: Books subject at 5.15pm SG time
Hi TradeHaven
May i ask what can Tat Hong do from the 500mil MTN if they cannot pay this bond during maturity in 2018. f Tat Hong apply for the 500mil MTN from sgx. Is there any restriction to use this 500mio. Let say they use the first tranch 100mio but are now in bad shaqe need to repay. Is there a rule from MAs that say they cannot use the next 400mio to ask for funds when they are in bad shape?
Thanks!
Hi Ken
The due diligence on the MTN programme is done by the bank and the due diligence on the bond purchase should be done by the investor.
MAS does not have any jurisdiction on the matter.
If the company is in distress and files for bankruptcy, then it is SGX which will take over.
If the company has difficulties in repaying the first tranche, then the panel of banks on the MTN programme will probably take steps to ensure a higher coupon for the next tranche ? until the 400 million is exhausted.
It is a market of willing buyers and sellers and as long as there are buyers, then they can continue to issue.
Hope that helps.
Tat Hong SGD 5Y price today is looking like 100.30/100.50 (4.43/4.38%).