LCD plans renounceable rights of up to S$105,366,446 convertibles

By Jennifer Chiou

New York, Dec. 8 – LCD Global Investments Ltd. announced plans for a renounceable rights issue of up to S$105,366,446 principal amount of convertible bonds due 2020.

The company’s board said that LCD intends to issue 100 convertible bonds for every 1,000 existing ordinary shares, according to a company filing.

As of Dec. 8, JTrust Asia Pte. Ltd. holds roughly 29.5% of the company’s shares. It has committed to subscribe for its full pro rata share of the convertibles and, if there are bonds that are not subscribed for, will take up all of the unsubscribed convertible bonds.

The five-year convertibles will be issued at par of S$1.00 each and will bear interest at 2.5% per year.

The conversion price will be S$0.25, which represents a 3.85% discount to the S$0.26 closing price of LCD stock (SGX: L38) on Dec. 4.

Based on the maximum issue size, the bonds would be convertible into 421,465,784 shares.

The company will have the right to call the bonds in whole at 102.5 beginning two years after the issue date or if less than 10% of the original issue amount is outstanding.

HL Bank Singapore is the manager.

Proceeds will be used primarily for the enhancement of assets and/or business acquisitions as well as for working capital.

Based in Singapore, LCD is focused on hospitality and investment holdings.

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