Bangkok--26 Sep--Kith & Kin
After an overwhelming response from investors, the US$ 169.80 million convertible bond issue was listed on the Singapore Exchange Securities Trading Limited (“Singapore Exchange”) today and will be used to fund a shipping fleet renewal and expansion plan by refinancing its secured long-term debt and strengthen its business potential.
M.L. Chandchutha Chandratat, Managing Director of Thoresen Thai Agencies Public Company Limited (“Thoresen”), said that Thoresen sold convertible bonds in a total amount of US$ 169,800,000 to foreign investors on 19 September 2007. The funds were received and the convertible bonds were issued on 24 September 2007. The bonds were then listed today on the Singapore Exchange. Admission of the Bonds to the Official List of the SGX-ST is not to be taken as an indication of the merits of the Bonds.
“We are extremely pleased with the reception by the market of this issuance, the first capital markets transaction by Thoresen since its IPO in 1995. To achieve greater liquidity in the convertible bonds, we are glad that they will be traded on the Singapore Exchange.” M.L. Chandchutha said.
The issue of the Bonds (the “Issuance”) is the largest convertible bond issuance in Thailand in the last 10 years, achieving a book of demand that was 3 times covered. The Bonds, which were issued under Regulation S format, are due 2012 and have a coupon of 2.50% per annum, a yield to maturity of 5.50%, and a conversion premium of 15%. The Bonds also feature a staggered maturity structure and a stock redemption settlement option, both of which are firsts for any issuance out of Thailand.
The convertible bonds will result in lower cash interest costs and an increased debt capacity to fund vessel acquisitions and new-builds. “This issue of the Bonds will provide Thoresen with a strong and flexible financial platform to finance our expansion and execute our strategic plan while continuing to maintain a conservative gearing policy. Together with funds from existing operations, this will allow Thoresen to prudently and opportunistically carry out a fleet renewal and expansion programme over the next 4—5 years”, M.L. Chandchutha said.
Under the fleet renewal and expansion plan, Thoresen aims to reduce its average fleet age and increase its average tonnage per ship. Thoresen has already announced five handymax new-builds due for delivery between 2009 and 2011 and currently owns and operates a fleet of 45 ships consisting of handysizes and handymaxes.
Macquarie and Merrill Lynch were the Joint Lead Managers on the Issuance.
For More Information
Bangaorn Kaewboworn Tel 02 6633226 # 68 Mobile 081-904-7907
Orawan Thalerngkrietkhamjorn Tel 02 6633226 # 67 Mobile 083-984-0750