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Singapore Airlines *Official* (SGX:C6L)

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Old 27-03-2020, 12:50 AM   #586
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3 rights issue for every 2 shares, each share at $3 which is 31.8% discount to post dilution share price of $4.40.
Hoot ah~
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Old 27-03-2020, 12:51 AM   #587
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going to open $4 plus and shareholder going to cough out cash... Double whammy for shareholder...
so fast factor in the post rights issue price??
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Old 27-03-2020, 01:34 AM   #588
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Of open 4+ in morning, I may consider buying.

so fast factor in the post rights issue price??
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Old 27-03-2020, 05:24 AM   #589
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SINGAPORE: Singapore Airlines (SIA) is tapping existing investors for up to S$15 billion (US$10.48 billion) through the sale of shares and convertible bonds to offset the shock to its business from the coronavirus outbreak.

The fund raising is being underwritten by the airline's biggest investor, Temasek Holdings, which owns about 55 per cent of the group.


"This is an exceptional time for the SIA Group," SIA chairman Peter Seah said in a statement late on Thursday (Mar 26).

SIA's shares went into a rare trading halt earlier in the day after plunging to their lowest in 22 years as investors feared the pandemic will have a deep impact on the company.

Many governments worldwide have already stepped in to help airlines hammered by the virus-induced travel slump, with the United States offering US$58 billion in aid as widespread travel restrictions force many carriers to ground fleets and order thousands of workers on unpaid leave to keep afloat.

SIA has said it will cut capacity by 96 per cent, ground almost its entire fleet and impose cost cuts affecting about 10,000 staff in what it called the "greatest challenge" it had ever faced.


The airline said it would issue S$5.3 billion in new shares to current shareholders and also issue 10-year bonds to raise up to a further S$9.7 billion.

In addition, it has arranged a S$4 billion bridge loan facility with DBS Bank to support the company's near-term liquidity requirements.

The rights issue will be offered at S$3 per share, a 53.8 per cent discount to SIA's last traded price of S$6.5.

"This transaction will not only tide SIA over a short term financial liquidity challenge, but will position it for growth beyond the pandemic," said Dilhan Pillay Sandrasegara, CEO of Temasek International.

SIA said it would use the funding from the rights issues to beef up its capital and operational expenditure needs.

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Old 27-03-2020, 06:52 AM   #590
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How to apply for the rights for current shareholders? When is the deadline?
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Old 27-03-2020, 07:16 AM   #591
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Who will buy zero coupon convertible bond
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Old 27-03-2020, 07:24 AM   #592
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Who will buy zero coupon convertible bond
zero-interest bond...?
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Old 27-03-2020, 07:47 AM   #593
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so fast factor in the post rights issue price??
cr - no
xr - yes

when's the exercise date? rem to use ibanking or ATM to ask for excess.


not vested. good luck
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Old 27-03-2020, 07:47 AM   #594
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zero-interest bond...?
https://links.sgx.com/1.0.0/corporat...ncement%20.pdf
Size of Rights MCBs : Up to S$3.5 billion aggregate principal amount of Rights MCBs.
Issue Price of Rights MCBs : 100 per cent. of the principal amount of the Rights MCBs or S$1.00 for each S$1.00 of
principal amount of Rights MCBs.
Gross Proceeds : Approximately S$3.5 billion.
Maturity Date : The 10th anniversary of the date of issue of the Rights MCBs (the “Maturity Date”)
Coupon : Zero coupon
0
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Old 27-03-2020, 07:55 AM   #595
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Trying to trap those who already invested with the sunken cost fallacy sia


Most people I know bought a few years ago or even when SIA was $9-$12, dipped so badly liao then still cheapen their shares? Worse is all these just simply gives SIA more cash in hand but their foreseeable outlook still the same to me. Will bleed money in the short term. Bleed.

If I'm wrong please enlighten me.
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Old 27-03-2020, 08:11 AM   #596
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https://www.businesstimes.com.sg/tra...ares-and-bonds

SINGAPORE Airlines has proposed a massive cash call comprising a 3-for-2 rights issue of shares and a convertible bond issue to raise a combined S$8.8 billion - fully underwritten by Temasek - as carriers around the world head for a financial crash landing.

In a late announcement on Thursday, the airline said it is proposing a renounceable rights issue of up to 1.77 billion new shares at S$3 per share, on the basis of three rights shares for every two existing shares held by shareholders, to raise S$5.3 billion. The issue price represents a discount of about 53.8 per cent to the last transacted price of the S$6.50 on March 25. It added that the theoretical ex-rights price will be S$4.40.

SIA is also proposing to raise up to S$3.5 billion via a 10-year mandatory convertible bond (MCB) issue on the basis of 295 Rights MCBs for every 100 existing shares owned. The bonds, which come with zero coupon, will be priced at S$1 each.

If not redeemed before the maturity date in 10 years, the MCBs will be converted to new shares based on a conversion price of S$4.84, which is a 10 per cent premium to the ex-rights theoretical price.



In addition, SIA will also be seeking approval to further issue up to S$6.2 billion of additional MCBs on similar terms and to be offered to shareholders via one or more rights issues down the line. This could take place within 15 months of being approved by shareholders.

The national carrier said no underwriter is needed as majority shareholder Temasek - which currently holds a stake of 55.46 per cent - will vote in favour of the rights issues and has committed to subscribe for its full entitlement and any balances of both issuances not taken up. It will not be paid any fee for the undertaking.

In the meantime, the group has arranged a S$4 billion bridging loan facility with DBS Bank to help meet its near-term liquidity needs.

Of the S$8.8 billion in proceeds, SIA plans to use S$3.7 billion for operating cashflow, S$3.3 billion for aircraft purchases and aircraft related payments, and the rest for debt servicing and other payments.

The Covid-19 pandemic has presented an unprecedented crisis for airlines around the world, forcing them to slash capacity, ground aircraft and shed jobs as countries tighten their borders to visitors. The International Air Transport Assocation has estimated that global carriers will need up to US$200 billion in aid from governments to save the aviation industry.

SIA chairman Peter Seah said: "This is an exceptional time for the SIA Group. Since the onset of the Covid-19 outbreak, passenger demand has fallen precipitously amid an unprecedented closure of borders worldwide. We moved quickly to cut capacity and implement cost-cutting measures."
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Old 27-03-2020, 08:22 AM   #597
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Double whammy?

1. Rights issue to trap more retail investors cash
2. Mandatory convertible bond to further dilute existing shareholdings
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Old 27-03-2020, 08:30 AM   #598
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if unredeemed in 10years, the bond will be convertible at price of $4.84 per share. thats 484% in 10years, not bad what.
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Old 27-03-2020, 08:32 AM   #599
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Who will buy zero coupon convertible bond
To me it mean, For Ah gong only
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Old 27-03-2020, 08:36 AM   #600
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**** getting serious, govt touching reserves to bail out SIA, given how anal they are about our reserves.
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