Singapore Airlines (SIA) is to tap the retail market with a new offering carrying a 2.15% coupon.
The company is to issue S$300 million ($225 million) five-year bonds to the public in Singapore and to institutional and other investors.
The public offer is underwritten in full by Development Bank of Singapore (DBS Bank), Oversea-Chinese Banking Corporation Bank (OCBC) and United Overseas Bank (UOB). The joint lead managers, bookrunners and underwriters of the are DBS Bank, OCBC Bank, Standard Chartered Bank and UOB.
Under the terms of the offering:
- S$50 million in aggregate principal amount of bonds will be 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 will be offered under the placement at the issue price to institutional and other investors, outside the United States.
The bonds, which will be issued in denominations of S$1,000 each, will bear interest at the rate of 2.15% per annum, payable semi-annually in arrear. The bonds are expected to be issued on or about 30 September 2010 and will have a term of five years from their date of issue. The bonds will not be rated.
The net proceeds arising from the issue of the bonds will be used by SIA for capital expenditure and general corporate or working capital purposes.
SIA says it may re-allocate up to an additional S$100 million in aggregate principal amount if the bonds offered are oversubscribed.
Source: Commercial Aviation Online
