Singapore's CapitaLand tenders for three series of convertible bonds

By Jennifer Chiou

New York, Sept. 19 - CapitaLand Ltd. announced the launch of a modified Dutch auction tender offer for a to-be-set maximum amount of the following convertible bonds:

• S$424.75 million of outstanding 2.1% convertible bonds due 2016;

• S$971 million of outstanding 2.875% convertible bonds due 2016; and

• S$557.5 million of 3.125% convertible bonds due 2018.

According to a company announcement, the amount of notes the issuer will accept will be determined by the results of its proposed issue of S$600 million of new convertibles with a S$100 million greenshoe. The proceeds of that issue will be used with internal cash to finance the tender offer.

Holders of the 2.1% bonds may tender their securities at no lower than 97% of par. Holders of the 2.875% bonds may tender their securities at no lower than 102% of par and no greater than 106% of par, and holders of the 3.125% bonds may tender their securities at no lower than 108% of par and no greater than 111.5% of par.

The offer will end at 5 a.m. ET on Oct. 10.

The company will determine the purchase price per S$250,000 principal amount for each series.

CapitaLand said that the tender offer is contingent on the new issue proceeds.

Settlement is anticipated for Oct. 17.

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

The issuer is a Singapore-based property developer.

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