SGD New Issue Review : Tuan Sing 5Y 4.75%

TUAN SING HOLDINGS LIMITED 5Y SGD

Tuan Sing Holdings Limited New 5y SGD announced post investor meetings. Deal is anchored.
– Initial price guidance: 4.75% area

– Comps:
Wing Tai 4 2021 at 100, 4.00%
Banyan Tree 4.875 2019 at 100.75, 4.70%
Hong Fok 4.75 2019 at 99.875, 4.78%

This is one of those household names we grew up with and I remember my mom punted this one when I was child.

Their stock price has surged back to its highest in a decade and thus it is time to bring out those bonds ! This is on the back of a significant shareholder who owns Fragrance Group buying 6.5 mio shares in the open market just a few days ago. Sleepy town no more. Tuan Sing is back in the punter’s watchlist !

tuan sing share price

Tuan Sing recently acquired the remaining 50% shareholding which they did not own in the Grand Hotel Group from Morgan Stanley. GHG owns Grand Hyatt Melbourne and Hyatt Regency Perth.

Their balance sheet is growing ! This is from 2013 which does not include the

tuan sing bal sheet

Tuan Sing is a mini conglomerate with vested interest in laminated bags to commodities trading and of course, property development, hotels and golf retail chains as well as circuit boards.

Mixed bag which probably has some hidden value, given that it is family owned and that is the reason for the Fragrance stake.

Revenues are steady stream and would look better, I suppose, once their Robinson Towers upgrading is over.

tuan sing revenues

4.75% for 5 years ? with the 5 year interest rate at 1.81% today ? Is a premium of 2.94% for the bond buyer which is a fair deal considering this is their first time issue and the deal is spoken for by anchor investors already.

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I am actually looking at this bond today.

New Issue Offering ***DRYS 3YR Senior Secured ***
Issuer: DryShips, Inc. (DRYS)
Security: Senior Secured Notes due 2017
Collateral: Ocean Rig UDW Inc. (ORIG) shares
Offering Size: $500MM (plus over-allotment option – if exercised) Maturity: 3 Years
Initial Collateral Cover: 140% in ORIG shares
Maintenance Collateral Cover: 120% in ORIG shares (tested daily)
Coupon: 7.00%
OID: TBD Call: upto 20% per annum @ 102
Use of Proceeds: Repayment of a portion of the existing 5.00%
2014 Convertible Senior Notes Ranking: Senior Limitation on Restricted Payments: 50% of net income (carve out of $150MM) Limitations on Borrowings: Total Borrowings < 75% of Total Assets Change of Control: Standard