SGD New Issue Review : INDUS GAS SGD 3YR – PX GUIDANCE AT LOW 8s
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A bit more on Indus Gas after its mention in our Primary Credit Watch this morning.
INDUS GAS SGD 3YR – PX GUIDANCE AT LOW 8s
Issuer: Indus Gas Limited
Guarantor: iServices Investments Limited and Newbury Oil Company Limited
Issue: Senior Unsecured
Format: Regulation S only and S274/275 of SFA, SG; Issuance off US$ 300 million Multicurrency Medium Term Note Programme
Issue Size: TBD
Initial Price Guidance: Low 8s
Coupon: Semi-annually in arrear, actual/365 (fixed)
Financial Covenants: 1. Consolidated Total Debt to Consolidated Equity shall not: (a) at any time up to and including 31 March 2017 be more than 2.5; and (b) at any time after 31 March 2017 be more than 2.0;
2. Consolidated EBITDAX to Consolidated Interest Expense shall not: (a) at any time up to and including 31 March 2017 be less than 2.0; and (b) at any time after 31 March 2017 be less than 3.0;
3. Consolidated Tangible Net Worth shall not: (a) at any time up to and including 31 March 2017 be less than US$200 million; and (b) at any time after 31 March 2017 be less than US$400 million; and
4. Its ratio of Consolidated Secured Debt to Consolidated Total Assets shall not at any time be more than 0.50.
Interest Service Reserve Account: None
Change of Control: Change of Control put at 101%, Gynia Holdings Limited and Focusoil Inc. Limited are together the beneficial owner of less than 51% of the total voting power of the Issuer, and other specified criteria in the offering circular of the Issuer
Details: SGD250K / Multicurrency Medium Term Note Programme /English Law
Clearing: Euroclear / Clearstream / CDP
Joint Bookrunners: DBS Bank Ltd.(B&D) and Standard Chartered Bank
Timing: This week’s business, as early as today
– New Indus Gas 3yr SG$ announced and deal is anchored
– Initial Price Guidance: Low 8s
– Issue Size: TBD
– Timing: As early as today
KRISSP6.25 06/17: 99.00, 6.50%
KRISSP5.75 08/18: 97.5, 6.59%
Small cap in LSE £310 mio market cap which did their IPO in 2008.
I am not sure where they got that coupon from for an exploration company.
Maybe its the India investment theme.
Loans of £191 mio so far, and raising more debt. Debt/Equity is looking like 142%.
After months of seeing oil and gas names at double digit yields, this one comes as a refreshing surprise.
United Energy Group SGD 6.85% 10/2016 (18 months left) is offered at 10.18% today vs the bid of nearly 13%.
India gas versus Pakistan gas ?