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Tuesday, November 9, 2010

Keppel Land to issue S$500 million convertible bond - 9 NOV 2010

Keppel Land to issue S$500 million convertible bond.
Key Points
  • The Singapore-dollar denominated bonds will bear interest at the rate of 1.875% per annum, payable semi-annually in arrears.
  • The initial conversion price has been set at a 33% premium over the closing price of S$5.05 per Keppel Land share on 8 November 2010.
  • The convertible bonds, which have a term of 5 years, will be convertible into new Keppel Land ordinary shares at an initial conversion price of S$6.72 per new share.
  • Upon full conversion of the bonds, a total of 74,404,761 new Keppel Land ordinary shares will be issued, representing 5.13% of Keppel Land’s existing issued and paid-up share capital as at 8 November 2010.
  • Keppel Land intends to use the net proceeds of approximately S$493 million in the following manner:
    • approximately 80% to 100% to finance potential acquisition opportunities which the Company may pursue in the future as part of its strategic objectives and/or to refinance existing debts; and
    • approximately 0% to 20% for general corporate and working capital purposes. 

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