Singapore's CapitaLand buys back S$60 million 3.125% convertible bonds

By Toni Weeks

San Luis Obispo, Calif., June 14 - CapitaLand Ltd. announced it will repurchase S$60 million of its 3.125% convertible bonds due 2018 on June 19.

The repurchase, which is being made to reduce the principal amount of outstanding indebtedness and ongoing debt service obligations, is separate from and not conditional on the company's modified Dutch auction tender offer for the same bonds.

In the tender offer, the company accepted for purchase S$432.5 million of its S$1.05 billion of convertible bonds. The tender offer began May 20 and ended at 5 a.m. ET on June 11. Settlement is expected June 19.

The tender offer was to be funded with proceeds from the company's issue of S$650 million of new convertible bonds. The repurchase will also be funded with the new financing, subject to an upsize option of an additional S$150 million of bonds, and/or internal cash resources.

Credit Suisse (Singapore) Ltd. is the dealer manager for the tender offer. Lynchpin Bondholder Management is the tender agent (capitalandinfo@lynchpinbm.com).

Following the repurchase and tender offer, the company said that S$557.5 million of the convertible bonds remain outstanding.

The Singapore-based property developer issued the notes on March 5, 2008.

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