Singapore’s Maxi-Cash begins tender, exchange offer for 5˝% notes

By Angela McDaniels

Tacoma, Wash., July 1 – Maxi-Cash Financial Services Corp. Ltd. began a tender and exchange offer for its S$70 million principal amount of 5˝% notes due April 27, 2020, according to a noteholder notice.

The company is offering to buy up to S$5 million principal amount of the notes at par plus accrued interest.

The company is also offering to exchange any and all of the notes for Singapore dollar-denominated 6.35% notes due July 22, 2022.

For each S$250,000 principal amount of 5˝% notes exchanged, holders will receive S$250,000 principal amount of new notes, an amount in cash equal to 0.75% of the principal amount of exchanged notes and accrued interest.

The offer will end at 10 p.m. ET on July 11. The settlement date for the new notes is expected to be July 22, and the settlement date for the tender offer is expected to be July 24.

The company also plans to issue additional 6.35% notes for cash.

If more than S$5 million of notes are tendered for cash, the tender and exchange agent will draw ballots to determine which tendered notes to purchase. Noteholders should note that they may have none or only some of their notes accepted for purchase if purchasing all of their notes would result in Maxi-Cash exceeding the cap.

The company said the tender offer is part of its ongoing capital management strategy to improve its debt position and to reduce negative carry. Additionally, Maxi-Cash said it has received interest from some noteholders (including directors and/or controlling shareholders of the issuer and/or their associates) who would like to extend their bond investment and remain invested in the group. Hence, the company decided to hold the exchange offer.

The exchange offer would also allow Maxi-Cash to extend its debt maturity profile ahead of the maturity of the 5˝% notes and remain well-capitalized for the next few years.

The company noted that it and its subsidiaries hold S$4 million principal amount of the notes.

The dealer manager is DBS Bank Ltd. (+65 6878 9821 or liabilitymanagement@dbs.com). The tender and exchange agent is Tricor Barbinder Share Registration Services (+65 6236 3550/3555 or is.corporateactions@sg.tricorglobal.com).

The issuer is a pawnbroker based in Singapore.

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