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-   -   Hyflux 6% Perpetual Securities (https://forums.hardwarezone.com.sg/stocks-shares-indices-92/hyflux-6%25-perpetual-securities-5372221.html)

SpinFire 17-05-2016 10:13 AM

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!

kehyi4 17-05-2016 11:51 AM

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

SpinFire 17-05-2016 11:59 AM

Quote:

Originally Posted by kehyi4 (Post 101403372)
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

kehyi4 17-05-2016 12:33 PM

Quote:

Originally Posted by SpinFire (Post 101403509)
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.

nats7798 17-05-2016 01:42 PM

When open to press?

Asphodeli 17-05-2016 02:34 PM

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.

w1rbelw1nd 17-05-2016 02:46 PM

Quote:

Originally Posted by Asphodeli (Post 101406088)
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?

Sent from OnePlus A0001 using GAGT

SpinFire 17-05-2016 03:15 PM

Quote:

Originally Posted by Asphodeli (Post 101406088)
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

Asphodeli 17-05-2016 03:28 PM

Quote:

Originally Posted by SpinFire (Post 101406776)
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 :s22:

Sent from Sony D5833 using GAGT

arctician 17-05-2016 03:29 PM

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?

Asphodeli 17-05-2016 05:11 PM

Public Offer and Placement begins TOMORROW 18 May, 9am. Closing date 25 May 12 noon.

SpinFire 17-05-2016 05:17 PM

Quote:

Originally Posted by Asphodeli (Post 101408968)
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

Asphodeli 17-05-2016 05:22 PM

Quote:

Originally Posted by SpinFire (Post 101409072)
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.

arctician 17-05-2016 05:30 PM

how come no official banner or brochure one huh

very hush hush sia..if never see this thread i will nvr know

Asphodeli 17-05-2016 05:31 PM

Quote:

Originally Posted by arctician (Post 101409260)
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.


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