Friday, November 15, 2013

F&N says holders of 2016, 2019 notes opposed amending terms

F&N says holders of 2016, 2019 notes opposed amending terms
Tags: Fraser And Neave

Written by Bloomberg  
Friday, 15 November 2013 10:13
Holders of Fraser & Neave Ltd.’s 5.5% 2016 and 6.0% 2019 notes voted against allowing the company to amend the terms the debt, hindering plans to spin off a property unit without causing a default.

Investors in three other series of the beverage and property conglomerate’s debt supported the amendment plan, the company said late yesterday.

The company, controlled by Thai billionaire Charoen Sirivadhanabhakdi, had asked holders of $808.25 million of debentures to waive certain default clauses and allow the company to buy back the securities on or before June 30, 2014 for a fee, according to Oct. 28 announcements.

F&N and its treasury “will consider their options in light of this result and will will make an announcement at the appropriate time,” the company said yesterday.

F&N plans to carve off its real estate division via a Singapore listing later this year. The 130 year-old group is seeking to separate that division from its other operations including its beverages and publishing units to focus on each units’ individual expansion strategies after the S$13.8 billion takeover by Thailand’s richest man.

Jennifer Yu, a Singapore-based investor relations manager at F&N, said last week when asked about the proposed bond deal that the company had “considered all options” and decided the buy back offer would “be the most consistent and fair approach for us to adopt.”

Singapore-based F&N offered to pay S100 cents on the dollar and a fee worth half of the note’s coupon and the accrued interest on the date that it can call the securities, the documents last month show.

The terms offered were below market levels for F&N’s higher coupon bonds, three investors in the $108.25 million 5.5% notes due 2016 said last week, all of whom intended to vote against the proposal.

F&N shareholders voted in favor of the spin off of Frasers Centrepoint Ltd. at an extraordinary general meeting on Wednesday, Nov. 13, according to a company release.

Bonds subject to the vote yesterday also included $150 million of 3.62% debt, $50 million of 2.45% securities due 2015, $220 million of 2.48% notes due 2016 and $80 million of 3.15% debentures due 2018, according to F&N’s Oct. 28 announcement.

Holders of the first three of those series approved the company’s plan. A quorum of holders to the 2018 bonds, which the F&N refers to as seven-year bonds, wasn’t achieved and the vote on amending that debt will be held again on Nov. 29, the company said.

Charoen, who acquired F&N via his companies including Thai Beverage Pcl earlier this year, has a net worth of US$8.9 billion($11.1 billion), according to the Bloomberg Billionaires Index.

Publish date: 15/11/13

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