HWZ Forums

Login Register FAQ Mark Forums Read

Hyflux 6% Perpetual Securities

Like Tree173Likes
Reply
 
LinkBack Thread Tools
Old 17-05-2016, 10:13 AM   #1
Arch-Supremacy Member
 
SpinFire's Avatar
 
Join Date: Apr 2001
Posts: 22,944
Hyflux 6% Perpetual Securities

New perpetual securities for retail investors
http://www.businesstimes.com.sg/comp...erpetuals-at-6

Key info
For these perps, Hyflux said distributions shall be payable semi-annually in arrears on May 27 and Nov 27 of each year, with the first payment of distributions scheduled to be made on Nov 27, 2016.

On or after the May 2020 distribution payment, however, the rate may be reset to the swap offer rate (SOR) on the relevant reset date plus an initial spread of 4.2 per cent per annum plus a step-up margin of 2 per cent per annum, Hyflux added.



Initial comments
Hyflux previously issued cumulative preferred shares in 2011 (more details here and here) with a 6% p.a. payout.

Actually I think that the 2011 issue could be a better deal. It's currently trading at ~4% with about 2 years left to next redemption date (yield-to-worst) and ~7.4% if it's not redeemed (yield to maturity).

More comments welcome!
anfielder, Beh-Hawk and StockBot like this.

Last edited by SpinFire; 17-05-2016 at 11:59 AM..
SpinFire is offline   Reply With Quote
Old 17-05-2016, 11:51 AM   #2
Senior Member
 
kehyi4's Avatar
 
Join Date: Aug 2010
Posts: 865
From bondsupermart, Hyflux has these bonds and perps outstanding:

HYFSP 3.500% 21Jul2016 Corp (SGD)
HYFSP 4.250% 07Sep2018 Corp (SGD)
HYFSP 4.200% 29Aug2019 Corp (SGD)
HYFSP 4.600% 23Sep2019 Corp (SGD)

HYFSP 6.000% Perpetual Pref (SGD) - Retail
HYFSP 6.000% Perpetual Corp (SGD) - Retail
HYFSP 5.750% Perpetual Corp (SGD)
HYFSP 4.800% Perpetual Corp (SGD)

I think the new issue is meant to replace the Jul 2016 one, rather than the 6% CPS
kehyi4 is online now   Reply With Quote
Old 17-05-2016, 11:59 AM   #3
Arch-Supremacy Member
 
SpinFire's Avatar
 
Join Date: Apr 2001
Posts: 22,944
From bondsupermart, Hyflux has these bonds and perps outstanding:

HYFSP 3.500% 21Jul2016 Corp (SGD)
HYFSP 4.250% 07Sep2018 Corp (SGD)
HYFSP 4.200% 29Aug2019 Corp (SGD)
HYFSP 4.600% 23Sep2019 Corp (SGD)

HYFSP 6.000% Perpetual Pref (SGD) - Retail
HYFSP 6.000% Perpetual Corp (SGD) - Retail
HYFSP 5.750% Perpetual Corp (SGD)
HYFSP 4.800% Perpetual Corp (SGD)

I think the new issue is meant to replace the Jul 2016 one, rather than the 6% CPS
Arh you're right. I didn't see the other issues.

I think they'll redeem the 4.8% Perp. It has a step-up on 29 July 2016

Last edited by SpinFire; 17-05-2016 at 12:09 PM..
SpinFire is offline   Reply With Quote
Old 17-05-2016, 12:33 PM   #4
Senior Member
 
kehyi4's Avatar
 
Join Date: Aug 2010
Posts: 865
Arh you're right. I didn't see the other issues.

I think they'll redeem the 4.8% Perp. It has a step-up on 29 July 2016
yeah, the 4.8% perp is 175mil, the 3.5% Jul16 is 100mil, so they'll need 275mil.

The new issue is 300mil, just nice.
SpinFire and matrix05 like this.
kehyi4 is online now   Reply With Quote
Old 17-05-2016, 01:42 PM   #5
Arch-Supremacy Member
 
nats7798's Avatar
 
Join Date: Jun 2008
Posts: 16,340
When open to press?
nats7798 is offline   Reply With Quote
Old 17-05-2016, 02:34 PM   #6
Arch-Supremacy Member
 
Asphodeli's Avatar
 
Join Date: Jul 2001
Posts: 14,832
EDIT: PHS is out, wow, seems like a damn good deal unless Hyflux calls it back (it's an "all or nothing" callable, first call date May 2020)? Usually this sort of terms is only available for institutionals/AIs, I think. And at 6% for the next 4 years...wow. If the 4-year SOR rate goes up in 2020, Hyflux will definitely have to call this.
__________________
Get spot PSI readings @ Community Online Haze Index
http://www.cohi.sg/

Last edited by Asphodeli; 17-05-2016 at 02:39 PM..
Asphodeli is offline   Reply With Quote
Old 17-05-2016, 02:46 PM   #7
Master Member
 
Join Date: Dec 2010
Posts: 2,609
EDIT: PHS is out, wow, seems like a damn good deal unless Hyflux calls it back (it's an "all or nothing" callable, first call date May 2020)? Usually this sort of terms is only available for institutionals/AIs, I think. And at 6% for the next 4 years...wow. If the 4-year SOR rate goes up in 2020, Hyflux will definitely have to call this.
So in your opinion the returns is enough to justify the risk involved for this?

w1rbelw1nd is online now   Reply With Quote
Old 17-05-2016, 03:15 PM   #8
Arch-Supremacy Member
 
SpinFire's Avatar
 
Join Date: Apr 2001
Posts: 22,944
EDIT: PHS is out, wow, seems like a damn good deal unless Hyflux calls it back (it's an "all or nothing" callable, first call date May 2020)? Usually this sort of terms is only available for institutionals/AIs, I think. And at 6% for the next 4 years...wow. If the 4-year SOR rate goes up in 2020, Hyflux will definitely have to call this.
Any idea which period SOR rate is applied for the step-up option?

Oh found it, using 4 year SOR. Didn't know there's a 4 year SOR option, thought its 1m 3m 6m lol

Last edited by SpinFire; 17-05-2016 at 03:19 PM..
SpinFire is offline   Reply With Quote
Old 17-05-2016, 03:28 PM   #9
Arch-Supremacy Member
 
Asphodeli's Avatar
 
Join Date: Jul 2001
Posts: 14,832
Any idea which period SOR rate is applied for the step-up option?

Oh found it, using 4 year SOR. Didn't know there's a 4 year SOR option, thought its 1m 3m 6m lol
Yeah that's why...got such things one ah? Lol

Asphodeli is offline   Reply With Quote
Old 17-05-2016, 03:29 PM   #10
Arch-Supremacy Member
 
arctician's Avatar
 
Join Date: Oct 2003
Posts: 12,140
definitely gg to press this, its a no brainer

still rem in 2011 hyflux CPS 6% was up 3-4% on first day of trading and i was only allocated 20% of placement

anyone know when can press?
__________________
I am a buibui sandsurfing in the wilds of sahara
arctician is online now   Reply With Quote
Old 17-05-2016, 05:11 PM   #11
Arch-Supremacy Member
 
Asphodeli's Avatar
 
Join Date: Jul 2001
Posts: 14,832
Public Offer and Placement begins TOMORROW 18 May, 9am. Closing date 25 May 12 noon.

Last edited by Asphodeli; 17-05-2016 at 05:13 PM..
Asphodeli is offline   Reply With Quote
Old 17-05-2016, 05:17 PM   #12
Arch-Supremacy Member
 
SpinFire's Avatar
 
Join Date: Apr 2001
Posts: 22,944
Public Offer and Placement begins TOMORROW 18 May, 9am. Closing date 25 May 12 noon.
The placement size so small, it'll probably be filled within a day. Think I'll press a small amount to expand my bond portfolio
SpinFire is offline   Reply With Quote
Old 17-05-2016, 05:22 PM   #13
Arch-Supremacy Member
 
Asphodeli's Avatar
 
Join Date: Jul 2001
Posts: 14,832
The placement size so small, it'll probably be filled within a day. Think I'll press a small amount to expand my bond portfolio
Yeah it's geared towards public. IIRC this was the practice for the previous one also. Not sure if the CEO wants everyone to share the wealth, or it's a sign of weakness on their balance sheets.

Personally I think it's good to hold if you're holding the shares, as it will hedge against the unstable dividends on it.
__________________
Get spot PSI readings @ Community Online Haze Index
http://www.cohi.sg/
Asphodeli is offline   Reply With Quote
Old 17-05-2016, 05:30 PM   #14
Arch-Supremacy Member
 
arctician's Avatar
 
Join Date: Oct 2003
Posts: 12,140
how come no official banner or brochure one huh

very hush hush sia..if never see this thread i will nvr know
__________________
I am a buibui sandsurfing in the wilds of sahara
arctician is online now   Reply With Quote
Old 17-05-2016, 05:31 PM   #15
Arch-Supremacy Member
 
Asphodeli's Avatar
 
Join Date: Jul 2001
Posts: 14,832
how come no official banner or brochure one huh

very hush hush sia..if never see this thread i will nvr know
Haha hush hush is good what, no meh? Anyway it was announced on SGX website, corporate announcements page this morning.

BTW prospectus and PHS are out liao on MAS OPERA.
__________________
Get spot PSI readings @ Community Online Haze Index
http://www.cohi.sg/
Asphodeli is offline   Reply With Quote
Reply
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On