SGD New Issue Alert : Mencast Holdings Ltd 3Y
Sept. 4 (Bloomberg) — According to person familiar with
Borrower: Mencast Holdings Ltd.
Format: Reg. S, S.274 & S.275 Singapore SFA
Coupon: 5.75% semi-annual
Issue price: 100%
Maturity: 12 Sept. 2016
Bonds to be under co.’s S$200M multi-currency MTN programme
Marine company – market cap is SGD 140 mio ?
11 Jul Mencast secures two offshore services contracts from Keppel
14 Jun Mencast Holdings – Full speed ahead on the growth lane : NRA Capital Research
“Initiate coverage with an Overweight recommendation and a S$0.71 fair value,
based on 10x PER FY14, (in line with its peers in the marine and offshore
industry). This translates into potential upside of 31% from its current price.
We believe its business model will benefit from 1) continued capex spending in
the offshore O&G space 2) growth of Singapore as a marine and offshore repair
and conversion hub 3) outsourcing trend by shipyards. The group has continued to
expand its service offerings by acquiring 5 companies in the past 2 years, which
are expected to give a boost to its plans to expand locally, in South East Asia
and the Middle East.” Source : NRA Capital/Bloomberg
We know little about this company. 5.25% for 3Y with 3Y interest rate at 1.03% would appear relatively decent until we consider that Nam Cheong (a better name) came out with their first 3Y bond issue at 6% last year when rates were much lower.
No further comment.