Oxley Holdings has announced that its wholly-owned subsidiary, Oxley MTN has invited holders of its outstanding $150 million 5.7% notes due in 2022 to sell a portion of their notes for cash, through an invitation memorandum dated September 8.
In addition, Oxley MTN also intends to re-open the issue of the existing $70 million 6.9% notes due in 2024 and issue new Singdollar-denominated fixed rate notes which will be consolidated under the existing series.
Oxley MTN states it intends to use "some" of the net proceeds of the $70 million issuance to fund the purchase of the outstanding notes under the $150 million issuance. The remainder will be used for other general corporate purposes.
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To that end, the amount of the outstanding $150 million notes that will be repurchased by Oxley MTN will not exceed the gross proceeds of the new issuance.
In a filing to the Singapore Exchange on September 8, Oxley states that the purpose of the invitation is to reduce the amount of Oxley's short term debt, as part of its capital and liability management initiatives to optimise its debt capital structure.
Oxley MTN will give priority to the existing noteholders who wish to take part in both the invitation and the new notes, effectively facilitating the roll-over of their investments.
Credit Suisse (Singapore), DBS Bank and The Hongkong and Shanghai Banking Corporation have been appointed dealer managers for the invitation.
The invitation will expire on September 22 at 12pm. The notes may only be offered for sale in principal amounts of $250,000 and integral multiples thereof.
Shares in Oxley closed at 22.5 cents on September 7.
Photo: Oxley
