Drew & Napier acted for Tuan Sing in its recent tender offer exercise and new notes issuance
03 Nov 2021
Drew & Napier acted for mainboard-listed property developer Tuan Sing Holdings Limited (“Tuan Sing”) in its recently concluded tender offer exercise (“Tender Exercise”) for its outstanding 7.75 per cent. existing notes due 2022 and in the issuance of its S$200 million 6.9 per cent notes due 2024 issued pursuant to Tuan Sing’s S$900 million multicurrency medium term note programme.
The new notes were issued on Monday, 18 October 2021. The order book size for the new note offering approached S$300 million as at the close of business on 11 October 2021, making it one of the largest order books for mid cap companies in recent months.
The proceeds from the offering will be used for property development and investment, refinancing, as well as for general corporate purposes and general working capital requirements of the group, and to finance the aggregate purchase price for its existing notes under the Tender Exercise.
The Tender Exercise was undertaken as part of Tuan Sing’s strategy to actively manage its debt capital structure by improving and extending its debt maturity profile and optimising financing costs. In conjunction with the new notes, the Tender Exercise provided existing noteholders with an opportunity to remain invested in Tuan Sing and its subsidiaries.
Existing noteholders who took part in both the Tender Exercise and the new notes were given priority, effectively facilitating the roll-over of their investments into the new notes. $40 million out of $65 million in outstanding notes were tendered, with the mark down taking effect on 18 October 2021.
Deputy Head of our Banking & Finance practice, Director Renu Menon led a team comprising Senior Associate Benjamin Ng and Associate Anmol Gill, in advising Tuan Sing on the new notes issuance. The team, together with Directors Ong Ken Loon and Ron Cheng, and Senior Associates Lye Yuan Jun and Lim Tong Jing, also advised Tuan Sing on the Tender Exercise.