SGD New Issues : HPL 10Y NC 5 & Ezra 09/2015 Reopening

** S$ TAP- EZRA HOLDINGS 5.00% 09/16 @ 100.00 area **

Issuer: Ezra Holdings Limited
Status: Direct, unconditional, unsubordinated and unsecured Notes
Reopening Issue:   Re-opening of S$200 million 5.00% Senior Unsecured Notes due 7 September 2015 (ISIN: SG6W28985177)
Issuer/Issue rating:  Unrated
Format:  Reg S, S274 & 275 of Singapore SFA
Reopening Issue Size: [To Be Determined]
Maturity Date:  7 September 2015
Coupon:  5.00% area p.a., semi-annual
Initial Px Guidance:  [100.00] area
Clearing: CDP
Details: S$250k x S$250k / Multicurrency Debt Issuance Programme / Singapore Law / SGX Listing
Use of Proceeds : For financing general working capital and general corporate purposes of the Issuer and its subsidiaries (“Group”) and remaining for refinancing the existing borrowings

Ezion 5.25 2015 @ 102.30 | 3.83%
ASL 4.75 2017 @ 99.75 | 4.83%
Nam Cheong 6 2015 @ 103.00 | 4.52%
Ezra 5 2015 @ 100.00 | 5.00%

– Reopening of existing Ezra Holdings SGD200m 5.00% due 09/15 announced at  5.00% area on the back of positive enquiries from accounts for this well known repeat issuer

I would feel slightly betrayed by this reopening because just before today it was trading at 100.80-101.30. Why is Ezra feeling so generous today when they could possibly raise money at closer to 4.55% ? Does ring some alarm bells too ? To be tapping the shorter tenor of 2015 when the logical thing would be to extend out as far as they can to their 2018 issue ?

Good carry for the new buyers. Bad news for the existing holders unless they buy more which reminds me of all those rights issues in 2009.


Issuer:  Hotel Properties Limited
Status:  Senior, unsecured
Rating: Unrated
Format: Off the Issuer’s SGD800 million Multicurrency MTN Programme
Structure: 10NC5
Issue Size: S$100MM
Fixed Rate Coupon for the first 5 years:      3.90% p.a., semi-annual, ACT/365, fixed-rate basis

Floating Rate Coupon from Year 6 to maturity: In the event the MTN are not fully redeemed by the Issuer on the First Call Date, the Fixed Rate Coupon will be converted into Floating Rate Coupon at the prevailing 6M Swap Offer Rate (6M SOR) + 230bps p.a. for the remaining tenure of the MTN.
The reference source for this would be the Moneyline Telerate Page 50157 of the Moneyline Telerate Service (or such other page as may replace it for the purpose of displaying the swap rates of leading reference banks)
Floating Rate Interest Period: 6-months
Floating Rate Interest Determination Date: 2 Business Days before each Interest Period
Call Option:  The Issuer may call, in whole but not in part, the Notes at 100.00 on the 10th interest payment date, together with the accrued interest, and at every interest payment date thereafter.
Redemption for Taxation Reasons: Yes, the MTN may be redeemed by the Issuer in whole but not in part, at any time on giving not less than 30 days nor more than 60 days’s notice to the noteholders

Issue Date: 12 September 2013
First Call Date: 12 September 2018
Maturity Date:12 September 2023
Issue Price: 100.00%
Denomination: SGD250,000
Governing Law:Singapore Law
Clearing:  CDP
Selling Restrictions: Sections 274 and/or 275 of the Singapore SFA

3.90% ? 5Y ? In a market where >4% is commonplace suddenly, with more than enough >4% issues to choose from ?

Unquestionably a better company, in my opinion, than Guoco at the moment. And I shudder at this headlines out of Hiap Hoe.

Sept. 6 (Business Times) — INTEGRATED property developer Hiap Hoe Limited expanded its overseas portfolio with a A$105
million (S$122.2 million) acquisition of a mixed use retail and office asset in the Central Business District of Melbourne,

That is half their market cap !