NEW ISSUE: NOBLE US$ REGS PerpNC5 | IPG: 6.000% AREA
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR IN ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW
ISSUER: Noble Group Limited
ISSUER RATINGS: Baa3 (positive)/BBB- (stable)/BBB- (stable)(Moody’s/S&P/Fitch)
EXPECTED ISSUE RATINGS: Unrated
EXPECTED EQUITY CREDIT: 50% Moody’s / 50% S&P (for first 5 years) / 50% Fitch / 100% IFRS
SECURITY DESCRIPTION: Subordinated Perpetual Capital Securities
STATUS OF THE SECURITIES: Subordinated, senior only to ordinary shares
FORMAT: Reg S, Registered
ISSUE SIZE: US$ Benchmark size
MATURITY: Perpetual non-call 5 Year
INITIAL PRICE GUIDANCE: 6.000% area
DISTRIBUTION RATE: From Issue Date to Year 5, at the Initial Distribution Rate
From Year 5 to Year 10, reset 5YR UST + Initial Spread over UST
From Year 10 to Year 25, reset every 5 years at 5YR UST + Initial Spread over UST + 25bps
From Year 25, reset every 5 years at 5YR UST + Initial Spread over UST + 25bps + 75bps
OPTIONAL DEFERRAL: Cumulative and compounding
DIVIDEND STOPPER: Dividend stopper on Junior and/or Parity Securities if Distributions are deferred
CALL OPTION: Callable at Par at the end of Year 5 and every Distribution Payment Date thereafter
EARLY REDEMPTION EVENTS: Withholding Tax Event (Par), Equity Credit Classification Event (101% to Year 5; par thereafter), Minimal Outstanding Amount Event (Par), Accounting Event (101% to Year 5; par thereafter)
USE OF PROCEEDS: Refinancing of 8.5% Perpetual Capital Securities issued on Nov 1 2010 and general corporate purposes
TERMS: SGX Listing, 200k/1k denoms, English Law (subordination provisions governed by Bermudan law)
** PRICE GUIDANCE 6% AREA
** EXP DEAL SIZE: US$ REGS BENCHMARK
** TIMING: AS EARLY AS TODAY’S BUSINESS
PRE-ANNOUNCEMENT COMPS
NOBLSP 3 5/8 03/20/18 400MM 102.500 2.916% T+122 G+169
PTTEPT 3.707 09/16/18 500MM 103.832 2.743% T+105 G+132
PTTEPT 4 7/8 1MMM 100.625 4.733% T+304 G+303
CHINLP 4 3/4 03/19/20 500MM 108.115 3.193% T+150 G+130
CHINLP 4 1/4 750MM 101.125 4.015% T+232 G+221
I really would not expect anyone who had their Noble USD 8.5% perp called so unceremoniously,to be buying into this issue or anyone who had liked the Far East Horizon SENIOR perp yesterday to be interested in this one.
https://tradehaven.net/market/very-vague-on-sgd-perpetuals-to-worry-or-not-after-noble-perp/
Yet, strange things do happen.
CIC is behind them for 13.92% and it gives Noble some clout much like Olam with Temasek’s 58.44%.
Far East Horizon only has GIC’s measly 5.96% stake.
An interesting observation in an article out of Reuters over a year ago is that Asian retail investors prefer unrated perpetuals that do not abide by rating agencies’ regulations for lower step ups of less than 1%.
For that reason, retail investors should not find the call option terms too enticing.
NEW ISSUE: KOH BROTHERS 3.5YR SGD
NEW ISSUE ANNOUNCED FOLLOWING GOOD INTEREST FROM ROADSHOW
PRICE GUIDANCE: 5% AREA
EXPECTED SIZE: BENCHMARK
Familiar SME name. SGD 136 mio market cap and so a benchmark issue which is 200 mio would be good work and a great accomplishment for the company. Besides they are already running on 3 times financial leverage which is alot (assets of about 700 mio/equity 228 mio). Throw in another 200 mio, and what is the difference ? Oxley still looks worse at 11 times and much more like a bank, if you ask me.
3.5 year interest rate is about 1.2% which gives this bond a 3.8% premium.
But with a 40 year track record in Singapore, anyone who buys this bond will be a sure fan of the company and there is no need to delve too much into analysis.
Even KSH Holdings with 2 years left issued last year at 5.25% for 2.5 years, is trading at 101.90 4.2%.