By Angela McDaniels
Tacoma, Wash., May 18 - WBL Corp. Ltd. will begin a rights offering for up to S$158.43 million 2.5% five-year convertible bonds on Tuesday, according to an offer information statement filed with the Monetary Authority of Singapore on Monday.
Stockholders will be offered three convertible bonds with a denomination of S$1.00 each for every four stock units. Stockholders can apply for additional convertibles.
Fractional entitlements will be disregarded and these, along with any allotments that are not taken up, will be allocated to investors who apply for more convertibles or otherwise sold.
The rights can be traded through May 27, and the rights offering will end at 5 a.m. ET on June 2.
The convertibles are expected to be issued June 10 and to begin trading June 12.
Foreign shareholders can only participate if they provide an address in Singapore with the exception of qualified institutional buyers in the United States, who will be able to participate under Rule 144A.
Oversea-Chinese Banking Corp. Ltd. is the underwriter.
The conversion price is S$2.29. It was set at a discount of 35% to the market price on May 6, which was four business days before ex-rights trading of the common stock began.
The convertibles will be callable if less than 10% of the original principal amount remains outstanding.
The company first announced plans to issue up to S$159.68 million of the convertibles on March 31. Stockholders approved the rights offering at an extraordinary general meeting on April 28.
Proceeds from the rights issue will be used to partially refinance a S$180 million term loan maturing in June.
WBL is a Singapore-based investment holding company.
| Issuer: | WBL Corp. Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | Up to S$158,472,479
|
| Maturity: | June 2014
|
| Coupon: | 2.5%
|
| Price: | Par of S$1.00
|
| Yield: | 2.5%
|
| Conversion price: | S$2.29
|
| Call option: | If less than 10% remain outstanding
|
| Underwriter: | Oversea-Chinese Banking Corp. Ltd.
|
| Pricing date: | May 6
|
| Settlement date: | June 10
|
| Stock symbol: | Singapore: W01
|
| Stock price: | S$3.11 on May 18
|
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