The new S$4bn debt, which pays an
opening margin of 165bp over Libor,
comprises a S$3.75bn seven-year term loan
and a S$250m 6.5-year revolving credit
facility.
Marina Bay Sands is also amending
covenants on and extending a S$5.1bn
existing loan, which underwent a similar
A&E exercise in March last year. That debt
comprises a S$4.6bn six-year term loan
tranche A maturing in March 2024 and a
S$500m 5.5-year revolving credit tranche B
due in September 2023.
Less than S$4bn of that borrowing
remains outstanding and will be extended
for slightly over two years to August 2026.
Marina Bay Sands is raising the new-
money loan to fund a new project that
is estimated to cost around S$4.5bn and
will involve construction of a state-of-
the-art 15,000-seat arena, a luxury hotel
tower and additional space for hosting
meetings, incentive, conventions and
exhibitions.
Since opening in 2010, Marina Bay Sands
has attracted more than 330 million visitors
and hosted 3,680 events at the Sands Expo
and Convention Centre in 2018 alone,
according to a press release on April 3 from
US-listed parent and gaming giant Las Vegas
Sands Corp.
RESTRUCTURING
› PAC RADIANCE SEEKS EXTENSIONFinancially strapped PACIFIC RADIANCE plans to
hold a consent solicitation to seek approval
from investors holding a S$100m (US$72m)
4.3% bond to extend the maturity beyond
September 30.
Bondholders had consented last
September to move the original maturity
date of August 31 2018 to September
30 2019, with repayment in either a
combination of equity and cash or a new
convertible bond.
However, the Singaporean offshore
vessel owner continued to face challenges,
with independent auditor Ernst & Young
in April withholding its opinion on the
company’s latest annual results because of
uncertainties over the success of its debt
restructuring.
The company announced last week
that it had signed a sale and purchase
agreement to acquire Allianz Marine
and Logistics Services Holdings and its
subsidiaries from Ahmed Tarek Khalil
Ali and other unidentified vendors. The
acquisition is part of a restructuring plan
that will involve a proposed equity issue
which the vendors will also subscribe to.Pacific Radiance has received indicative
proposals for debt financing of US$180m
or more which will be used to fund the
acquisition, repay debt including bank
loans, and fund general corporate and
working capital needs.
The Singapore High Court in July
extended the moratorium on legal
proceedings against the company to
September 5. Pacific Radiance plans
to apply for another extension to the
moratorium.EQUITY CAPITAL MARKETS
› SOILBUILD REIT ANNOUNCES ISSUESOILBUILD BUSINESS SPACE REIT has announced
a S$101.8m (US$73m) preferential share
offer at S$0.53 each.In a stock exchange
announcement Soilbuild REIT said 192.1m
shares will be sold in a 18-for-100 ratio.
The offer price is at a 8.6% discount to the
pre-deal close of S$0.58. Year to date as of
August 22 the shares were down 2.6%.
Lim Chap Huat, chairman of Soilbuild
Group and his three sons – Lim Han Ren,
Lim Han Feng and Lim Han Qin – have
agreed to buy their respective entitlements
which represent 29.5% of the offer.KrisEnergy skips interest payments
Bonds Oil exploration and production company seeking moratorium while it restructures debtSingapore’s KRISENERGY has skipped an
interest payment due last Thursday on a
S$200m (US$144.5m) 4% 2023 bond, after
missing principal and interest payments due
the previous day on term loan facilities.
The payment defaults had looked
inevitable after the oil exploration and
production company applied to the
Singapore High Court on August 14 for a six-
month moratorium against legal proceedings
while it restructures debt of US$476.8m.
In a SGX statement, KrisEnergy said on
Thursday that it would not pay principal
and interest payments of US$4.6m due on
August 21 on loans from HSBC and Standard
Chartered Bank. HSBC has sent a letter to
accelerate its term loan, the size of which was
not disclosed.
The issuer also said it would not pay
S$4.09m of interest due on the 2023s,
adding that it would enter talks with HSBC,
StanChart and the 2023 bond trustee and
other stakeholders to restructure the debt.
The restructuring will involve a US$200m
revolving credit facility from DBS Bank,S$130m 4% bond due 2022, S$200m 4%
bond due 2023, S$139.5m zero coupon note
due 2024, an unspecified term loan with
HSBC and an unspecified term loan with
Standard Chartered Bank Singapore.
KrisEnergy said it was over-geared and
under-capitalised. Drew & Napier is its legal
adviser and Houlihan Lokey Singapore its
financial adviser.
The protection application to the
Singapore court, which will be heard on
September 9, comes more than two and a
half years after the company won consent
in December 2016 from bondholders
of more than S$330m to extend the
maturities of two bonds by five years and
reduce the coupons.
The moratorium application triggered an
event of default under KrisEnergy’s existing
debt agreements.
KrisEnergy said lower oil prices and
lower sales dented its revenues in the first
half of the financial year ended June 30
2019, leading to a capital deficiency. At
end-June 2019 its gearing was 110.8%,making it a challenge to meet its financial
obligations.
Restructuring proposals include the sale
of assets and a potential acquisition of
KrisEnergy as a whole. Any options being
discussed would require DBS’s consent under
the RCF terms, given that the bank has a
comprehensive first ranking security charge
over KrisEnergy’s assets.
The RCF is structured such that the key
economic risk is borne by major shareholder
Keppel Corporation, which also holds the
zero coupon notes and is owed around
US$179m in claims from KrisEnergy.
Keppel, which has appointed Borrelli Walsh
as its financial adviser on the KrisEnergy
restructuring, has already recognised a
S$40m net loss in the first quarter of the
2019 financial year from KrisEnergy’s losses.
An OCBC credit note said further
impairments were likely at Keppel as
it expected the shareholder to provide
further financial support given KrisEnergy’s
precarious financial health.
KIT YIN BOEY