RE-OPENING: GALLANT VENTURE SGD 7.00% NOTES DUE 2018 –
– Re-opening of gallant venture SGD 7.00% Notes due 2018
– Re-opening Price: 100.00
– Re-Opening Size: TBD
– Timing: as early as today
Comparable
GALVSP7 04/18: 100.00/100.50
Sad for existing bondholders who have seen the price of this paper go up to 101 after issuance only for it to go KAPUT back to 100 with this re-opening. Congrats to those who sold at the high ! And now can buy back lower.
95% of previous issue went to private banks !
SGD 575 mio in outstanding bonds with the MTN size USD 500 mio which means they cannot issue more than SGD 93 mio or thereabouts.
Read what I said about their debt and their finance costs here last month : https://tradehaven.net/market/sgd-new-issue-review-gallant-venture-3y-low-7/
Share price has fallen since April.
Still, this is a household name that investors are mostly familiar with which means that 7% will be a big carrot especially with bond markets back in comfy zone.
I would not overly expose myself if I already have some paper but today’s credit spread is wider at 5.37% (3 year interest rates at 1.63% compared to 1.74% when they issued last month) which is not too bad considering the Golden Agri deal yesterday and everything else coming in tighter than usual.
Good luck !