Operational & Financing Update
9 January 2013
Asian Plantations Ltd
("Asian Plantations" or the "Company")
Operational & Financing Update
The board of directors of Asian Plantations (the "Board") is pleased to provide the following update regarding its operations and financing:
Operational Update
The Company's 60 tonne per hour Fresh Fruit Bunch ("FFB") crushing mill has been completed and the boilers will be fired during the week of 14 January 2013. The mill will be expanded, as planned, to its full capacity of 120 tonnes per hour during the course of 2014.
Financing Update
Issue of medium term notes
The Company intends to issue the second tranche of the medium term notes ("MTN") by the end of March 2013. The first tranche of RM 100.0m (approximately US$32.8m) was issued on 10 May 2012 (the "First Tranche"). The second tranche will total RM 155.0m (approximately US$50.9m) via an issuance of notes of five to nine year maturities, on the same terms as those applicable to the First Tranche, to the local Malaysian pension fund market (the "Second Tranche"). Of the capital raised via the Second Tranche, it is currently intended that RM 95.0m (approximately US$31.2m) will be applied to the re-financing of existing debt facilities and the remainder of RM 60.0m (approximately US$19.7m) is intended to be used for plantation development and general working capital requirements.
The MTN programme is fully guaranteed by Malayan Banking Berhad, a leading Southeast Asian bank.
Issue of Convertible Bonds
Additionally, the Company has today entered into an agreement to issue convertible unsecured bonds ("Convertible Bonds"), totalling up to US$15.0m, via a Company sponsored placing, to OCBC Capital Investment I Pte Ltd, a wholly owned subsidiary of OCBC Bank ("OCBC"). OCBC is one of the largest banks in Southeast Asia and its securities are publicly traded on the Singapore Stock Exchange. It has an equity market capitalisation in excess of US$25bn. OCBC has been rated by Bloomberg Markets, in 2012, as the world's strongest bank for a second consecutive year.
The Convertible Bonds bear a cash interest coupon of 3 month Libor +2.00 per cent. per annum, which is payable quarterly in arrears until the three year maturity is reached in 2016 (the "Maturity Date").
The Convertible Bonds, if fully issued to US$15.0m, may be converted at any time, in aggregate, into a maximum of 3,260,041 new ordinary shares of no par value in the Company (the "Ordinary Shares"), representing approximately 7.01 per cent. of the Company's currently issued share capital, until the Maturity Date at the individual bondholder's election. This implies a conversion price of 286 pence per Ordinary Share, based on the current exchange rate (the "Conversion Price"). The Conversion Price represents a 25 per cent. premium to the 20 day volume weighted average price.
The Company expects to issue the first tranche of US$5.0m during the course of the next ten business days. The remaining US$10.0m is subject to certain conditions precedent including, inter alia, completion of the proposed Grand Performance Sdn Bhd acquisition previously announced on 28 September 2012. The Company expects to issue the remaining tranches no later than 30 June 2013.
The Company shall redeem all outstanding, non-converted Convertible Bonds, in whole, on the Maturity Date, such that the amounts paid by the Company on redemption result in the bondholders having achieved, in respect of the Convertible Bonds, including coupon payments and issuance fees, an internal rate of return of 15 per cent.
Proceeds from the issuance of the Convertible Bonds will be applied to the Company's general working capital requirements.
-ENDS-
For further information contact:
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Asian Plantations Limited Graeme Brown, Co-Founder & Joint Chief Executive Officer Dennis Melka, Co-Founder & Joint Chief Executive Officer
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Tel: +65 6325 0970
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Strand Hanson Limited James Harris James Spinney
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Tel: +44 (0) 20 7409 3494 |
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Macquarie Capital (Europe) Limited Steve Baldwin Dan Iacopetti
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Tel: +44 (0) 203 037 2000
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Panmure Gordon (UK) Limited Tom Nicholson Callum Stewart
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Tel: +65 6824 8204 Tel: +44 (0) 20 7886 2500 |
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Bankside Consultants Simon Rothschild
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Tel: +44 (0) 20 7367 8871
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This information is provided by RNS
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