Re: Interesting Bond issues
Pacific Andes’
SGD 200 million ($160m) bonds “sold like hot cakes”, a source told the Singaporean business newspaper Business Times. The frozen fish supplier has received orders exceeding
SGD 2 billion for its three-year issue, the source told the newspaper............The bonds are due on July 30, 2017 and will bear interest at the rate of 8.5% per annum, payable semi-annually.
http://www.undercurrentnews.com/2014/07/24/pacific-andes-bonds-sold-like-hot-cakes
Oversubscribed by >$1.8bn but such phenomenon can be misleading. The grey market prices didn't surge despite such mad book-building; it is struggling to stay above 100.
China Fishery Faces Second Deadline in Debt Restructure Bid
China Fishery Group Ltd. (CFG) faces a second deadline today as it seeks approval from bondholders to let its unit in Peru guarantee as much as $1.2 billion of debt.
The Singapore-listed group is pushing for Corporacion Pesquera Inca SAC, its Lima-based unit known as Copeinca, to guarantee obligations including $650 million of credit lines from five lenders, $300 million of its July 2019 bonds and future borrowings, company filings show. That would require a majority of holders of Copeinca’s $250 million notes due February 2017 agreeing to relax the bonds’ covenants, according to a July 17 consent solicitation document.
“It’s very negative for bondholders to consent to this because Copeinca is now going to represent basically the vast majority of China Fishery’s earnings and it has the least amount of debt,” Mariela Anguiano, an analyst at BCP Securities LLC in Greenwich, Connecticut said by phone Aug. 20. “If you make a simple calculation, it doesn’t make sense from a bondholder perspective.”
“The worst-case scenario, if they can’t get the consent from Copeinca bondholders, is a
technical default on the loans and the banks will probably give them a temporary waiver,” Annisa Lee, a credit analyst in Hong Kong at Nomura Holdings Inc., said by phone on Aug. 20. “The other alternative is for them to call the Copeinca bonds”
http://www.bloomberg.com/news/2014-...ond-deadline-in-debt-restructure-attempt.html
On July 18, Pacific Andes’ fishing arm China Fishery asked holders of Copeinca’s $250m bond to approve a change to their terms that would see Copeinca guarantee up to $1.2 billion of debt belonging to China Fishery.
http://www.undercurrentnews.com/2014/07/22/pacific-andes-taps-singapore-bond-market-for-160m/