Singapore Airlines (SIA) has allocated an additional S$100 million ($76.2 million) to its five-year bonds carrying a 2.15% coupon after the initial public offer was almost seven times oversubscribed.
The company issued S$300 million five-year bonds to the public in Singapore and to institutional and other investors in September. Under the terms of the initial offering:
- S$50 million in aggregate principal amount of bonds was offered under the public offer at the issue price of 100% of the principal amount of the bonds to the public in Singapore.
- S$250 million in aggregate principal amount of bonds was offered under the placement at the issue price to institutional and other investors, outside the United States.
It said last month that if the bonds offered under the public offer are oversubscribed, it may, in consultation with DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited as the co-ordinating bookrunners to re-allocate up to S$100 million in aggregate principal amount of the bonds from the placement to the public offer to satisfy such excess demand.
The company opted for a maximum of S$100 million re-allocation as at the close of the public offer, valid applications in respect of S$346.28 million in aggregate principal amount of the bonds under the public offer had been received.
Accordingly, the total of S$300 million in aggregate principal amount of bonds was allocated as follows:
- S$150 million in aggregate principal amount of the bonds to the public offer; and
- S$150 million in aggregate principal amount of the bonds to the placement.
The bonds were listed for quotation on the Main Board of the Singapore Exchange Securities Trading on 1 October 2010 and started trading on the same date.
Source: Commercial Aviation Online
