NEW ISSUE: CW GROUP HOLDINGS LIMITED SGD 3YR
Issuer: CW Advanced Technologies Pte. Ltd.
Guarantor: CW Group Holdings Limited
Status: Senior, unsecured, off SGD 500 million Multicurrency Debt Issuance Programme
Rating: Unrated
Format: Reg S, S274 & 275 of Singapore SFA
Tenor: 3 Years
Issue Size: TBD
Initial Price Guidance: Low 7s
Payment: Semi-annual, Actual/365 (fixed)
Settlement Date: [ ] June 2015
Maturity Date: [ ] June 2018
Redemption at Option of
Noteholders upon Cessation or Suspension of Trading of Shares of the Guarantor: At par, in accordance with the Programme
Redemption at the Option of Noteholders upon Change
of Shareholding Event: At par, in accordance with the Programme
Redemption for Taxation Reasons: Yes, in accordance with the Programme
Details: SGD250,000/SGX-ST/CDP/Singapore Law
Sole Bookrunner: DBS
CW GROUP HOLDINGS LIMITED SGD 3YR
– New CW group SGD 3yrs announced post roadshow, deal is anchored by reverse enquiries
– Initial price guidance: low 7s
– Timing: As early as today
**Comparable :
Amtek 6.9 2019 nc 2017 at 103.15, 4.99%
CW Group Holdings Ltd (1322 HK) manufactures machine tools. The Company also conducts feasibility studies; designs; sources assemblies, components and parts; manufactures, installs and tests its products and offers after-sales support. CW Group serves customers in the precision machine tool engineering, construction materials, solar energy, electronics, and other industries.
Listed in 2012 and current market cap of HK$3.7 bio had approximately tripled this year, they quickly established a S$ 500 mio MTN programme less than a fortnight ago.
Given they are a regional company (incorporated in the Cayman Islands) with most long term assets in Singapore and that they derive their revenues evenly between Thailand, India, PRC and Malaysia, it would make sense for them to sell bonds in Singapore.
The financials look decent with strong revenue growth and good interest coverage on relatively low leverage and quite a lot of inter company transactions with various parties and subsidiaries and joint ventures that I do not have time to try and understand.
Bond will probably sell well because of the big, fat and juicy PB rebate – the highest I have seen in a long, long time that could give investors an additional 0.33% (est) in coupon.
Good luck !