SGD CORPORATE BONDS : THE CALLS AND THE MATURITIES of 2015

Lots of hype about Swiber, first buying 750k of their perpetuals in the open market and now a formal announcement that they would be calling back the entire perpetual issue in September this year. http://www.businesstimes.com.sg/companies-markets/swiber-confirms-plans-to-call-perpetual-bonds

A bold move for the company, considering they have a maturity of $95 mio coming up next month for their senior securities that was issued in 2012 and last seen with an indicative yield of 18%.

Here is the list of maturities to look out for in the months ahead.

BOND MATURITIES 2015

At a quick glance, Ezra is under more pressure than Swiber because they have a $225 mio maturity due in Sept besides their callable perpetual of $150 mio in the same month. In total Ezra has only $620 mio in bond debt but Swiber has close to $1 bio due between now and 2018.

It should be a tight race, noting that both companies have less than $200 mio in cash on last check though Swiber did a rights issue back in Feb this year.

Bond markets remain frozen for these O&G shippers at the moment thus I would expect some bank bridging loans to come in handy.

The 2015 maturity Swiber bonds have rallied this morning and the perp appears to be bidded higher (with no offers) than the rest of the senior papers.

Good luck !