Hyflux 6% Perpetual Securities

[shenglong88]

Good to Hoot?

 

[Pocoyoz]

https://www.bondsupermart.com/main/article/Hyflux-Ltd58-Better-times-ahead-291

 

[w1rbelw1nd]

If i not wrong like 30 mil of it is reserve for staffs to press
So they eating their own cooking too

The gearing is high, thus the yield is high too
Given a choice between the mother stock vs the perp bonds
I would take the perp bonds for sure

Yes, I don't see much upside of hyflux equity as well, may be better to own the PCS and pray that the company no adverse events leading to defaults.

Once hyflux starts deferring its coupon payments for its "real debts", maybe 2-3 years worth of 6% dividend won't be enough to cover the potential capital loss through sale of PCS in sgx. buyers beware....

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[foozgarden]

in event of default.
bond holders get paid first then mother share holders?

 

[homedriver]

Sorry to ask how to apply this? Like IPO through Internet banking can?

 

[Asphodeli]

in event of default.
bond holders get paid first then mother share holders?

Creditors (I.e. Banks), then bond holders, then shareholders

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[Asphodeli]

Sorry to ask how to apply this? Like IPO through Internet banking can?

Yup. 9am then open hor

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[SCG8866T]

Wow net debt to equity 3.315x worse then aspial and its perpetual means no maturity. Have to study more indepth to decide.

 

[homedriver]

Not much capital gains one
If want to press the mindset should be hold for 5 years
Each year earn 6%

But can trade anytime like stock if need to cash out?

 

[Asphodeli]

But can trade anytime like stock if need to cash out?

yes, as long as it is offered to the public (i.e. can press at ATM), means it will be listed on SGX, except for Singapore Savings Bonds

 

[tmkedmw]

But can trade anytime like stock if need to cash out?

Yes, can trade on sgx just like the previous 6% public tranche.

 

[foozgarden]

Wow net debt to equity 3.315x worse then aspial and its perpetual means no maturity. Have to study more indepth to decide.

ya, their debt level is scary

 

[SCG8866T]

Anyone know if temasek is currently vested in Hyflux?

 

[SCG8866T]

ya, their debt level is scary

Sorry should be 0.99x

 

[Asphodeli]

Anyone know if temasek is currently vested in Hyflux?

Don't think so. From their latest AR:

 

[epiphany01]

in event of default.
bond holders get paid first then mother share holders?

to be precise:
creditors > senior bond holders > subordinated bond holders> pref shares (sometime can be pari passu with sub bond holders) > ordinary share holders

 

[SCG8866T]

Did more data churning. 70% of their revenue comes from sg. Their net asset (after deducting total liabilities) is S$1.23bil. Net debt(total liabilities minus cash) is $1.216bil. Means net debt to equity is ard 0.99x. Total cash on hand 165mil(quite low). Net gearing 0.98x(quite high).

Pro: majority of their top line comes from Singapore. Municipal sector continued to be the main contributor. TuasOne WTE project is the main driver to 1Q2016 revenue.

They have good access to capital markets, means can easily raise money to refinance.

Con: neg free cash flow, high net debt, exposure to the middle east and china, high gearing. Pref shares and bonds interest expenses eating up most of their bottom line..

 

[Guojing88]

Can someone explain the May 2020 event in plain English?

 

[lzydata]

Can someone explain the May 2020 event in plain English?

Starting Nov 2016 and up to May 2020, Hyflux will pay 6% pa every May and Nov.

After May 2020, if the perps are not redeemed, the interest rate will be reset to X% + 6.20% where X% is the 4-year Swap Offer Rate (SOR) on the second business day prior to the reset date. If Hyflux continues not to redeem, this will also happen in May 2024, 2028 etc.

According to the OIS, the 4-year SOR on 16 May 2016 is 1.80%. Assuming the 4-year SOR around May 2020 is the same, the interest rate on the perps will be 1.80% + 6.20% = 8.00% pa.

 

[lzydata]

Placement results out, looks like the big boys are hungry for yield. $217m subscribed for $50m, now the placement allocation is $165m and public offer is only $115m.

http://infopub.sgx.com/Apps?A=COW_C...rities - Placement Closing NR 18 May 2016.pdf

http://infopub.sgx.com/Apps?A=COW_C...ose of Placement Announcement 18 May 2016.pdf