Retail Bonds Oxley 5%

winorlose

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Skip.... This company as mentioned in the perennial thread is too over highly geared.

They already have otc bonds listed and will mature almost every year from 2015.

New $$$ pay old $$$ haha
 

winorlose

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Haha yea indeed we also have a famous debtor here doing that. Balance trf to cover old debts. Keep on rolling baby!
 

Wood41

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As long as they can continue generate $$ from their investment & that's is a good debt.

No risk keeping in a <1% saving account ?
 

dork32

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As long as they can continue generate $$ from their investment & that's is a good debt.
this statement is totally correct. if they borrow at 5% and they are able to get profits at 10% then all is well.
 

doody_

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Haha yea indeed we also have a famous debtor here doing that. Balance trf to cover old debts. Keep on rolling baby!

If the company can keep rolling, also no issue buying the bonds cos when it's time they will roll it forward and you will get your money :)
 

Some-one

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The stock may not be good due to high debt-equity. Bonds might seem better.
 

SCG8866T

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this is what debt is about, right? even dbs launch a new 4.7 pref shares to replace their old 6%

They replace it because their old preference share terms were not in line with Basel 3 qualification. Yea, you do have a point though, bonds cannot be studied like equities.

Oxley have 516mil worth of net asset, 293mil cash, 4x interest coverage. Financial leverage at ard 8.247x around, full year Jun 2015 ard 62% geared. Looks like this is an aggressive growing company. They have launched 30 projects and has completed 16 projects. Their Kap and Kap Residence at bukit timah is currently 99% sold. Their other four bond issues all trading above par.

Worth the risk to hold for 4 years? Maybe a nibble but definitely not all in. The issue size is small, and if **** hits the fan they can liquidate their assets? From my side, the demand from the private tranche is huge. Me personally still thinking whether to pass or to nibble...
 

SpinFire

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They replace it because their old preference share terms were not in line with Basel 3 qualification. Yea, you do have a point though, bonds cannot be studied like equities.

Oxley have 516mil worth of net asset, 293mil cash, 4x interest coverage. Financial leverage at ard 8.247x around, full year Jun 2015 ard 62% geared. Looks like this is an aggressive growing company. They have launched 30 projects and has completed 16 projects. Their Kap and Kap Residence at bukit timah is currently 99% sold. Their other four bond issues all trading above par.

Worth the risk to hold for 4 years? Maybe a nibble but definitely not all in. The issue size is small, and if **** hits the fan they can liquidate their assets? From my side, the demand from the private tranche is huge. Me personally still thinking whether to pass or to nibble...

Is Oxley upsizing their 25m placement tranche?
 

epiphany01

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damn shitty deal. i look at bonds from 4 angles. Price, Credit strength, Mgmt, Liquidity.

Price / relative value:
their previous bonds trading above par doesnt mean much to me. If they issued at wide lvls in the past and the bonds traded tighter inwards. Issuing new bonds at the new tighter pricing doesnt mean that the new bonds will trade above par.

the Oxleys 5.1% maurity Oct-2016 is quoted at 100.75 (4.38%). Thats about 290bps in credit spread. Comparing that with the new Oxleys 4yrs 5% (credit spread of 285bps).

You are better off buying the 2016 Oxleys. Less duration risk as well. At least if I buy I know I will get my money back earlier than those holding the 4yr bonds.

Credit strength:
their gearing, debt/ebit, FCF is very horrific. Ebit-interest expense also not great. Against a rising rate environment, softening property market, they can refi now but no guarantee can re-fi in future.

Mgmt:
anyone here attended their investor meetings or roadshows or AGMs before? if u did, i think you will know when I say that I dont get a good vibe lending money to them

Liquidity:
retail (and corporate as well) bond markets are quite illiquid. are I assured of a bid when I want to sell? hard to say

Its time companies stop taking the retail folks for fools and pay crap pricing to the man on street jsut because they have a lack of options.
 

SpinFire

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damn shitty deal. i look at bonds from 4 angles. Price, Credit strength, Mgmt, Liquidity.

Price / relative value:
their previous bonds trading above par doesnt mean much to me. If they issued at wide lvls in the past and the bonds traded tighter inwards. Issuing new bonds at the new tighter pricing doesnt mean that the new bonds will trade above par.

the Oxleys 5.1% maurity Oct-2016 is quoted at 100.75 (4.38%). Thats about 290bps in credit spread. Comparing that with the new Oxleys 4yrs 5% (credit spread of 285bps).

You are better off buying the 2016 Oxleys. Less duration risk as well. At least if I buy I know I will get my money back earlier than those holding the 4yr bonds.

Credit strength:
their gearing, debt/ebit, FCF is very horrific. Ebit-interest expense also not great. Against a rising rate environment, softening property market, they can refi now but no guarantee can re-fi in future.

Mgmt:
anyone here attended their investor meetings or roadshows or AGMs before? if u did, i think you will know when I say that I dont get a good vibe lending money to them

Liquidity:
retail (and corporate as well) bond markets are quite illiquid. are I assured of a bid when I want to sell? hard to say

Its time companies stop taking the retail folks for fools and pay crap pricing to the man on street jsut because they have a lack of options.

Very good points. Doubt I'll be applying for it
 

dork32

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They replace it because their old preference share terms were not in line with Basel 3 qualification. Yea, you do have a point though, bonds cannot be studied like equities.

the dbs 4.7 is not in line with basel 3. the instituitional tranche as already been redeemed because of it. for the retail one is still around.
 

chowck

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damn shitty deal. i look at bonds from 4 angles. Price, Credit strength, Mgmt, Liquidity.

the Oxleys 5.1% maurity Oct-2016 is quoted at 100.75 (4.38%). Thats about 290bps in credit spread. Comparing that with the new Oxleys 4yrs 5% (credit spread of 285bps).

You are better off buying the 2016 Oxleys. Less duration risk as well. At least if I buy I know I will get my money back earlier than those holding the 4yr bonds.

Where do we buy the Oxleys 5.1% mature Oct-2016? Can't find it in any trading platform? Also, it may be quite illiquid.
 

SCG8866T

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** OXLEY MTN PTE. LTD. - SGD 4YR AT 5.00% **

ISSUER: Oxley MTN Pte. Ltd. ("Issuer")
GUARANTOR: Oxley Holdings Limited ("Guarantor")
STATUS: Direct, unsubordinated, unconditional and unsecured
TENOR: 4 years
OFFER/ISSUE: Up to S$125,000,000 in aggregate principal amount of 4-year bonds due 2019 ("Bonds") comprising:
(A) an offer of up to S$100,000,000 in aggregate principal amount of Bonds at the issue price of 100 per cent. to the public in Singapore through ATM/Internet Banking/Mobile Banking applications (the "Public Offer"); and
(B) an offer of up to S$25,000,000 in aggregate principal amount of Bonds at the issue price of 100 per cent. to institutional and other investors (the "Placement"), (collectively, the "Offer"), provided that:
(1) the Issuer and the Guarantor reserve the right to cancel the Offer in the event that less than S$50,000,000 in aggregate principal amount of applications are received under the Offer;
(2) the Issuer and the Guarantor may, at their discretion and in consultation with the Sole Lead Manager and Bookrunner, re-allocate the aggregate principal amount of Bonds offered between the Public Offer and the Placement; and
(3) in the event of oversubscription in the Public Offer and/or the Placement, the Issuer and the Guarantor may, at their discretion and in consultation with the Sole Lead Manager and Bookrunner, (i) increase the issue size of the Bonds under the Public Offer and/or the Placement and (ii) determine the final allocation of such oversubscription between the Public Offer and the Placement, such that the maximum issue size under the Public Offer and the Placement shall not exceed S$300,000,000 in aggregate principal amount of Bonds.
INTEREST: 5.00% p.a.
INTEREST PAYMENT: Semi-annual / Actual/365 (fixed)
DENOM: S$1,000 each or in integral multiples thereof
MINIMUM SUBSCRIPTION: Public Offer - S$2,000 in aggregate principal amount of Bonds per application or such higher amounts in integral multiples of S$1,000 thereof
Placement - S$100,000 in aggregate principal amount of Bonds per application or such higher amounts in integral multiples of $1,000 thereof
OFFER PERIOD FOR PUBLIC OFFER AND PLACEMENT:
Tuesday, 27 October 2015 at 9.00 a.m. to Tuesday, 3 November 2015 at 12 noon.
The offer period may be extended, shortened or modified by the Issuer to such duration as it may, at its absolute discretion, think fit, with the approval of the Singapore Exchange Securities Trading Limited ("SGX-ST") (if required) and the agreement of the Sole Lead Manager and Bookrunner, and subject to any limitation under any applicable laws.
EXPECTED ISSUE DATE: 5 November 2015
EXPECTED LISTING DATE: 6 November 2015

REDEMPTION AT THE OPTION OF THE BONDHOLDERS UPON A CHANGE OF SHAREHOLDING EVENT: Yes, in accordance with the Offer Information Statement dated 26 October 2015 (the “Offer Information Statement”)
REDEMPTION AT THE OPTION OF THE BONDHOLDERS UPON CESSATION OR SUSPENSION OF TRADING OF SHARES: Yes, in accordance with the Offer Information Statement
REDEMPTION AT THE OPTION OF THE ISSUER FOR TAXATION REASONS: Yes, in accordance with the Offer Information Statement
LISTING: Main Board of SGX-ST
LAW: Singapore
CLEARING: CDP
SOLE LEAD MANAGER AND BOOKRUNNER: DBS BANK LTD.
 
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dork32

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Where do we buy the Oxleys 5.1% mature Oct-2016? Can't find it in any trading platform? Also, it may be quite illiquid.

cannot find on sgx means likely it is the 200k type of bond. you dont have 200k, you can forget about it.
 

epiphany01

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Where do we buy the Oxleys 5.1% mature Oct-2016? Can't find it in any trading platform? Also, it may be quite illiquid.

cannot find on sgx means likely it is the 200k type of bond. you dont have 200k, you can forget about it.

its not a retail bond on sgx and its 250k minimum denomination, so you will have to be an accredited investor and source it thru your private/priority banker.

chowck, u are right regarding illiquidity as all the oxley bonds are quite illiquid but collecting 250k-500k in size shouldnt be a problem. Regarding illiquidity when it comes to unwinding, i look at it this way...for 1year risk, can I afford to hold it till maturity if i cant find a buyer (currently there are firm bids in market for up to 500k)? If its ok, then worst case i will wait it out till it matures in 1 year. Thats better than chancing illiquidity for 4 years and getting stuck.

but ah...if your portfolio is not sizable and you are thinking of taking out 250k to buy the 16s, i think its unwise as the concentration risks is very high.

whereas, if u are taking out small size to punt 4y retail bonds, maybe u can consider as well. Althou I did say the pricing and credit strength is crap, if say the demand is very hot, maybe some ppl will wanna punt n buy now and sell later when it rallies. (Eg. Perennial, i thought pricing and credit strength was crap also, but i knew everyone else likes it, so I punted in a small size and offloaded shortly after when it rallied).

different strategies for different investors bah, i dont know your investment style and rationale (trading or income or diversification?) and your age profile and background may be different from mine.

for me, I usually think of buying bonds is like lending money to someone and whats the worst case (ie default, cant sell in market, no buyers, kena stuck). Then its a question of me assessing if the company is able to pay back the bonds in 1 or 4 years. if they go into default, do they have assets that they can liquidate to pay off creditors etc.

cuz ultimately, if they cant pay, they give a coupon of 10% now also no use (**looks at Trikomsel :o:o)

sorry for my long windedness :eek: i have a tendency to ramble :(
 

dork32

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i dont mind long post, as long as it is talking facts. you did state quite a lot of facts in your post
 
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