ROXY-PACIFIC HOLDINGS LIMITED SGD 3YR 4.75%

**ROXY-PACIFIC HOLDINGS LIMITED SGD 3YR – IPG 4.75% AREA**

Issuer :  Roxy-Pacific Holdings Limited
Issuer Rating : Unrated
Status : Senior Unsecured
Issue Size :  TBD
Format :   Bearer, Regulation S only and S274/275 of SFA, SG;  Issuance off Issuer’s S$500M Multicurrency Debt  Issuance Programme
Tenor : 3-year
Initial Price Guidance :  4.75% area
Coupon Payment : Fixed Rate, semi-annual, actual/365 (fixed)
Settlement Date:  [] July 2015
Maturity Date:  [] July 2018
Denomination :   SGD250k
Redemption at Option of Noteholders Pursuant toChange of Shareholding  Event :  Yes. In accordance with the Programme
Redemption upon Cessation or Suspension of Trading of the Issuer’s Share :    Yes. In accordance with the Programme
Governing Law:  Singapore Law
Listing: SGX-ST
Clearing : CDP
UOP : As per Programme
Sole Lead Manager &
Bookrunner : United Overseas Bank Limited
Timing:  As early as today

** ROXY-PACIFIC HOLDINGS LIMITED SGD 3YR – UPDATE #1 **

–          New Roxy-Pacific SGD 3yr announced
–          Initial price guidance at 4.75% area
–          PB Selling Commission : 25 cents
–          Timing : This week’s business, as early as today

Comps
Hong Fok    4.75%  2018s ; 101.40, 4.16%

Credit Highlights

Roxy-Pacific Holdings Limited was incorporated on 24 May 1967 and was listed on the SGX Main Board on 12 March 2008. The market cap is approximately S$615mil as at 13 July 2015. The Group has a mixture of property development, hotel ownership and property investments across the Asia-Pacific.

–  Established track record and reputation : The Group has been involved in the property development business since 1967.The Group has developed a number of properties and has gone through several cycles in the property  market. In FY 2014, the Group achieved 10th consecutive year of record earnings since the 1st set of results for FY 2004 reported in the IPO prospectus.

–  Experienced management team : The Group is led by a team of four Executive Directors with years of experience in the property industry.

–  In-depth familiarity with the property development business : The Group is familiar with the property development business, with more than four decades of experience in property development in Singapore.

–  Established relationships and network : The Group’s good and effective working relationships with construction firms, property and marketing agents, suppliers and banks enable it to secure and complete its Property Development projects efficiently and promptly.

–  Grand Mercure Roxy Hotel which is a key asset of the Group : The Group also has hotel and resort development projects in Japan, Australia and Thailand. The Group believes that Grand Mercure and, when its hotels and resorts are completed in Japan, Australia and Thailand represent significant investment assets which generate recurring income for the Group.

Interesting to note that 83% of their 2014 revenues come from residential property development.

Only 15% from hotel management.

It will be a tough act to beat even if they have some new hotels coming out in Japan, Phuket and Perth besides just an apartment block to sell in KL. Their Singapore pipeline consists of just 7 current launches.

We note a secured bank loan that is only costing them over 2% so 4.75% which is secured on the following.

a) Freehold land and building;
b) Proceeds from the sale of investment properties;
c) Rental income from investment properties;
d) Guarantee by the Company;
e) Properties for sale under development; and
f) Proceeds from sales of properties under development

 

So 4.75% for a 3Y unsecured bond is ok ?