New York, Aug. 20 - First Resources Ltd. priced $100 million of five-year convertible bonds to yield 6.375% with a 23.5% initial conversion premium after the close Thursday.
The bonds have a coupon of 5.625% and are redeemable at a premium price of 104.34.
Credit Suisse (Singapore) Ltd. is the bookrunner, lead manager and underwriter for the issue.
Proceeds will be used to finance new investments and for working capital and general corporate purposes.
An application is being made to Singapore Exchange Securities Trading Ltd. for listing of the bonds and new shares upon conversion. The issue is conditional on approval for listing.
Eight Capital Inc., a substantial shareholder of First Resources, agreed to lend some of its shares to facilitate the issue.
Closing is expected on Sept. 22.
"The strong demand for our offering underscores the strong investor confidence in the group's ability to grow," said Ciliandra Fangiono, chief executive officer of First Resources, in a news release.
"This issue allows us to secure a significant amount of long term financing at attractive terms and will assist us as we plan our next phase of growth. We are now well positioned to expedite our planting program and expand our plantation footprint."
First Resources is a Singapore-based owner of palm oil plantations in Indonesia.
| Issuer: | First Resources Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $100 million
|
| Maturity: | Sept. 22, 2014
|
| Coupon: | 5.625%
|
| Price: | Par
|
| Redemption price: | 104.34
|
| Yield: | 6.375%
|
| Initial conversion premium: | 23.5%
|
| Conversion price: | S$1.24735; fixed exchange rate of S$1.4479 to $1
|
| Call: | Sept. 22, 2012 onwards at price to give yield to call of 6.375%, subject to 130% hurdle
|
| Put: | September 2012 at price to give yield to put of 6.375%
|
| Pricing date: | Aug. 20
|
| Settlement: | Sept. 22
|
| Bookrunner: | Credit Suisse (Singapore) Ltd.
|
| Share price: | S$1.01 at close on Aug. 20
|
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