13 June 2014

Ezion - S$150M Fixed Rate (4.875% - 6.875%) Notes due 2021 - June 2014

Ezion Holdings Limited (the “Issuer”) is pleased to announce that it has issued S$150,000,000
fixed rate notes due 2021 (the “Series 007 Notes”) under its S$1,500,000,000 multicurrency
debt issuance programme (the “Programme”). The Programme was established on 9 May 2012
and the size of the Programme was increased to S$1,500,000,000 on 8 May 2014.
DBS Bank Ltd. acted as the sole dealer in relation to the issue of the Series 007 Notes.

The Series 007 Notes will bear interest from, and including, 11 June 2014 to, but excluding, 11
June 2018 at 4.875 per cent. per annum and if not redeemed, will bear interest from, and
including, 11 June 2018 to, but excluding, 11 June  2021 at 6.875 per cent. per annum. The
Series 007 Notes will mature on 11 June 2021.

Under the terms and conditions of the Series 007 Notes, the Issuer may, on giving not less than
30 nor more than 60 days’ irrevocable notice to the holders of the Series 007 Notes, redeem all
or some of the Series 007 Notes on any of 11 June 2018, 11 December 2018, 11 June 2019, 11
December 2019, 11 June 2020 or 11 December 2020.

The net proceeds of the Series 007 Notes will be used by the Issuer to fund the proposed
tender/repurchase of its existing S$100,000,000 5.25 per cent. Notes due 2015 (ISIN:
SG6V18981831) and for general corporate purposes, including the financing of investments in
offshore and marine assets and general working capital of the Issuer or its subsidiaries.
Approval in-principle has been obtained for the listing and quotation of the Series 007 Notes on
the Singapore Exchange Securities Trading Limited (“SGX-ST”). The SGX-ST assumes no
responsibility for the correctness of any of the statements made or opinions expressed or
reports contained herein. Approval in-principle for the listing and quotation of the Series 007
Notes on the SGX-ST is not to be taken as an indication of the merits of the Issuer, the
Programme or the Series 007 Notes. The Series 007 Notes are expected to be listed on the
SGX-ST on 12 June 2014.

Source: Company

Some Keynotes:

  1. This was the first time Ezion to issue new debt under the enlarged MTN programme since year 2012, as it is part of the exercise to "refresh" the debt due 2015 (for S$100M 5.25% notes)
  2. It is expected to to further enhance liquidity of company to engage more projects for "lift boats" 
  3. Company share price was in the sideline as the company faced difficulties in delivering the liftboats (some of the projects would face some delay). I believe it will regain the speed of deployment once the issues were resolved
  4. For long run, the group normally would like to have optimal debt-equity structure of 2:1 for those "lift boats" projects if I am not mistaken. As you could see, the group also like to grow its business via investing in other associated companies / strategic partners
  5. At the market price of S$2.15, I believe the group is in reasonable or slightly undervalued price range. 


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