CapitaCommercial gets tenders to issue cleanup call for convertibles

By Susanna Moon

Chicago, Sept. 5 - CapitaCommercial Trust said it received enough tenders by Aug. 22 for its S$370 million of 2% convertible bonds due 2013 to issue a cleanup call and redeem the outstanding bonds.

The tender offer payment will be the maximum offer price of 111.3% of par in increments of S$250,000, according to a company press release.

After the offer ends on Sept. 6, the company said it will redeem the remaining bonds at 109.37% of par.

Pricing was to be set using a modified Dutch auction with a minimum price of at least 109.5% of par, according to a previous release.

There was about S$146.75 million of the convertibles outstanding when the offer began on Aug. 13.

Holders also will receive accrued interest up to but excluding the settlement date.

Under the issue terms, the convertibles are redeemable if, at any time, the total principal amount is less than 10% of the amount originally issued. So, if holders tender more than S$109.75 million principal amount of the convertibles in the offer, the company said it could redeem the remaining outstanding notes at a price of 109.35% of par on Oct. 14.

The convertibles were issued on May 6 with a put option 2011, which was exercised for S$6.25 million of the bonds. From February 2010 to December 2011, the company repurchased S$217 million of the bonds.

The tender offer is conditioned on the issue of S$175 million of new convertibles by the settlement date, which has been satisfied, and tenders for at least S$50 million principal amount of the convertibles under the offer.

CapitaCommercial said on Aug. 13 that it priced S$175 million of five-year convertible bonds with proceeds to be used for general corporate purposes, including funding the tender offer for the trust's 2% convertible bonds due 2013.

CapitaCommercial is a Singapore-based real estate investment trust focusing on Singapore commercial buildings.

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