SGD NEW ISSUE REVIEW : FRASER CENTREPOINT 7Y 4%
Sept. 29 (Bloomberg) — Pricing today.
• Issuer: FCL Treasury Pte Ltd
• Guarantor: Frasers Centrepoint Limited
• Reg S (off issuer’s SGD3b multicurrency debt program)
FRASERS CENTREPOINT LTD 7Y SGD – INITIAL PRICE GUIDANCE @ 4%
Issuer: FCL Treasury Pte. Ltd.
Guarantor: Frasers Centrepoint Limited
Status: Senior, unsecured
Issue Size: SGD Benchmark
Distribution: As per Information Memorandum, Singapore selling restrictions under Section 274/275 of SFA
Format/Docs: Reg S Bearer / Issuer’s SGD 3 billion Multicurrency Debt Issuance Programme
Price Guidance: 4% area
Governing Law: Singapore Law
Early Redemption: Yes, at make-whole (SGD SOR+0.50%)
Selling Restrictions: Sections 274
I told you so…. less than 2 weeks ago !
THEY WILL BE BACK !! AND FOR ALOT MORE !!
“They are likely to be borrowing ALOT more after increasing their $1 bio medium term borrowing programme to S$3 bio just last week following their acquisition of Australand, a former subsidiary of Capitaland fully divested in Mar this year, down in Australia where they are on a building spree.” https://tradehaven.net/market/sgd-new-issue-review-fraser-centrepoint-ltd-perp-nc-5/
Why do we bother to sell a company to someone who will borrow money from you to buy it ?
Because that is exactly what a LEVERAGED BUYOUT means !
Fraser Centrepoint has been busy buying properties
I have said all I wanted to say less than 2 weeks ago.
So people ask me FCL 4% or …
1. Wingtai 4% 10/2021 – I pick Wingtai
2. Far East Horizon 4.25% 10/2019 – I pick Far East Horizon
3. Sabana Sukuk 4.25% 04/2019 – I pick Sabana
4. Guoco 3.95% 04/2019 – toss up between the 2
This is not the same Centrepoint that we know, you know ?
In the past months, it has bought over subsidiaries from TCC …
“14 Jul acquisition of operating entities from TCC Group, which will be master lessees and tenants of the six hotels in Frasers Hospitality Real Estate Investment Trust’s initial portfolio.Says acquisition of K.K. Shinkobe Holding (SKH) and P I Hotel Management Limited (PIHML) was completed.Following Completion, SKH and PIHML have become wholly-owned subsidiaries of FCL.” http://in.reuters.com/finance/stocks/FRCT.SI/key-developments/article/3028915
And they will be looking to expand aggressively into Europe.
“June 24 (Business Times) — [SINGAPORE] Frasers Hospitality is on a buying spree to grow its portfolio, even as it is injecting six serviced residences into a hospitality Reit to be listed next month.
It hopes to set up a private equity fund focused on acquiring assets in Europe, where yields are currently the highest among its existing markets.
Another wholly owned unit of Frasers Centrepoint Limited (FCL), Frasers Hospitality Global Limited (FHGL), is also gunning for more acquisitions – not just in serviced residences, but also in hotels, resorts and, down the road, retirement villages.”