Pasdec board approves up to RM 150 million issue of Rainbow Exchangeable Bonds

By Jennifer Chiou

New York, Jan. 20 - Pasdec Holdings Bhd. said its board authorized the issue of up to RM 150 million of five-year and seven-year Rainbow Exchangeable Bonds (REBs).

The issue will consist of two tranches, including RM 15 million of REBs exchangeable for up to 7.1 million Road Builder (M) Holdings Bhd. shares and RM 135 million of REBs exchangeable for up to 51,029,336 YTL Cement Bhd. shares.

The REBs will be secured by a put-option written by the state government of Pahang to acquire the shares at an agreed exchange price, a deposit of the shares with the trustee, assignment of escrow and debt service reserve accounts and deposit of the coupon payments payable during bond term or assignment of a letter of offer from a financial institution for an irrevocable standby line equal to the coupon payments.

The company said the issue is expected to be completed by the second quarter.

Proceeds will go towards refinancing part of the company's bank borrowings and financing property development projects as well as working capital requirements.

The proposed issue is subject to approvals from the Securities Commission, Foreign Investment Committee and Pasdec shareholders of Pasdec.

OSK Securities Berhad is the principal adviser, lead arranger and facility agent. Pacific Alliance Capital Sdn. Bhd. is the financial and structuring adviser.

Based in Pahang Darul Makmur, Malaysia, Pasdec is a property developer.

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