Singapore’s Heeton offers to exchange 2023 notes for 2026 notes, cash

By Marisa Wong

Los Angeles, March 30 – Heeton Holdings Ltd. is inviting holders of its 6.8% fixed-rate notes due Nov. 13, 2023, series 005 (ISIN: SGXF19284094) to make an offer to exchange any and all outstanding existing notes, together with a cash top-up amount, for new 7% fixed-rate notes due Nov. 2, 2026 and an exchange fee payable in cash.

Currently, S$62.73 million of the original S$70.3 million principal amount of 2023 notes is outstanding.

For each S$180,000 of existing notes, together with a cash top-up amount of S$20,000, tendered for exchange, the issuer is offering S$200,000 of new notes and an exchange fee, plus accrued interest.

The exchange fee is a cash amount equal to 0.5% of the principal amount of the tendered notes if they are tendered by the early exchange deadline, or 0.25% of the principal amount of the tendered notes if they are tendered after the early deadline.

The cash top-up amount is required so that Heeton can issue new notes that are denominated in principal amounts of S$200,000. Cash top-up amounts must be transferred to a cash top-up account.

In addition to the new notes to be issued in exchange for the existing notes, Heeton plans to sell additional 2026 notes, which will be fungible and be consolidated into the same series as the exchange notes.

The early exchange deadline is 5 a.m. ET on April 14.

The offer will expire at 4 a.m. ET on April 19.

The latest time for cash top-up amounts to be received is 4 a.m. ET on April 20.

The company will announce pricing of any issue of additional notes on April 24.

Settlement is slated for May 2.

CIMB Bank Bhd., Singapore Branch (sgb.dcm@cimb.com; +65 6506 1127) has been appointed as the dealer manager for the offer.

Tricor Singapore Pte. Ltd. (+65 6236 3550/3555; is.corporateactions@sg.tricorglobal.com) is the exchange agent.

The company said the exchange offer gives existing noteholders the opportunity to remain invested in the group and for the company to term out its debt maturity profile.

Heeton is a Singapore property development and property investment company.

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