Perennial Real Estate Holdings Limited (Perennial) offers to public up to $150 million of Bonds.
Interest rate = 4.65% p.a paid semi-annually
Tenor = 3 years maturing 23 October 2018
Issue price = $1 per $1 in principal amount of the Bonds
“Net proceeds will be used for general corporate purposes, including refinancing of existing borrowings and financing of working capital, investments (including mergers and acquisitions) and/or capital expenditure requirements of the Issuer or the Group.” (Source: Perennial’s Product Highlights Sheet)
Financial position of Perennial as at 30 June 2015:
Total assets = $6,202 million
Total liabilities = $2,348 m
Equity = $3,853 m
Of the total liabilities, loans and obligations:
- Long term Loans and borrowings = $1,441 m
- Junior bonds = $143 m (secured bonds on CHIJMES & TripleOne Somerset)
- Current liabilities, loans and borrowings = $237 m
- Current liabilities, Trade and other payables = $389 m
Cash and cash equivalents as at 30 June 2015 = $94 m
This Retail Bonds (4.65%) has lower interest rate compared to earlier issues of borrowings.
“PCRT issued $130.0 million 6.375% Fixed Rate Notes due September 2015 and $50.0 million 5.25% Fixed Rate Notes due July 2016, under its MTN Programme.” (Source: Perennial accounts for 12 months ended 30 June 2015)
Please note that the Retail Bonds (4.65%) is not secured on any properties of the Perennial group unlike secured bank borrowings. “The Bonds would rank below existing secured borrowings of the Group (amounting to $1,216.1 million as at 30 June 2015).”
One risk of the Retail Bonds is re-payment in full if the business runs into financial difficulties before maturity in three years time.
Copyright © 2015, limkimtong for Living Investment
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