[ad_1]
SINGAPORE (THE BUSINESS TIMES) – Singapore Airlines (SIA) proposes to issue up to $ 850 million in principal amount of bonds, convertible into new common shares in the company’s capital, announced on Thursday (November 12) after the market close .
It is proposed to place the convertible bonds with institutional investors and other investors. HSBC has been designated as the sole book broker and principal administrator of the issue.
The $ 850 million figure is an indicative size. The terms of the bonds, including the total amount of principal to be issued, will be confirmed when pricing the issue, after HSBC completes a book-building exercise.
The price was expected to arrive on or around Thursday, with SIA making an announcement of final terms later.
SIA will ask SGX to list the convertible bonds and the new shares. The issuance of the bonds is subject to approval in principle for their listing.
The issuance closing date is expected to be December 3 or around that date. SIA expects to use the proceeds to fund operating cash flow, debt service and capital expenditures.
SIA said: “The financial effects of the issue will depend on the terms of the convertible bonds and will be announced in the announcement that the company will issue after the issue price.”
Shares of the national carrier closed up two Singapore cents or 0.51 percent at $ 3.94 on Thursday, ahead of the news.
[ad_2]
