NEW BOND ISSUE: CACHE LOGISTIC TRUST

[dgeralds]

Heard about it. 5.75% interst. Anybody got more details or info?

 

[BBCWatcher]

Cache Logistics Trust is a real estate investment trust (REIT) that invests in industrial property (warehouses) in Asia, specifically in Singapore, Australia, and (in a minor way) China.

There's a discussion about this company in this thread.

A note issued with a 5.75% coupon and purchased at or near par would be a high risk note, and it certainly wouldn't have an investment grade rating. (Just look at the yield.) I don't have the data on Australian warehouses at my fingertips, but in Singapore the vacancy rate for warehouses is at or near record highs. That's a significant negative risk factor in their business. It's also a young company.

MAS requires a minimum of $2 million net worth to participate in these notes. My advice would be you don't even consider these notes unless you have a net worth of at least $5 million, so that your exposure would be 5% or less to this note with minimum participation. It's a junk debenture, and you've got to be a high roller to play that game if you even want to play it.

 

[dgeralds]

Thank you BBCWatcher..

Cache Logistics Trust is a real estate investment trust (REIT) that invests in industrial property (warehouses) in Asia, specifically in Singapore, Australia, and (in a minor way) China.

There's a discussion about this company in this thread.

A note issued with a 5.75% coupon and purchased at or near par would be a high risk note, and it certainly wouldn't have an investment grade rating. (Just look at the yield.) I don't have the data on Australian warehouses at my fingertips, but in Singapore the vacancy rate for warehouses is at or near record highs. That's a significant negative risk factor in their business. It's also a young company.

MAS requires a minimum of $2 million net worth to participate in these notes. My advice would be you don't even consider these notes unless you have a net worth of at least $5 million, so that your exposure would be 5% or less to this note with minimum participation. It's a junk debenture, and you've got to be a high roller to play that game if you even want to play it.

 

[lzydata]

According to Bond Supermart, this is actually a perpetual, not a bond. Guidance is 5.75% but no size reported. It is callable within 5 years with no coupon step-up and non-cumulative.

https://www.bondsupermart.com/main/bond-news/prelaunch-bond-factsheet/968
https://www.bondsupermart.com/main/article/Cache-Logistics-Trust-SGD-Perp-NC5-at-575-Guidance-496

Not announced by Cache on SGX yet, but should be coming soon.

 

[elnewbie]

Non cumulative means that if they can't pay u this year, you lan lan..

According to Bond Supermart, this is actually a perpetual, not a bond. Guidance is 5.75% but no size reported. It is callable within 5 years with no coupon step-up and non-cumulative.

https://www.bondsupermart.com/main/bond-news/prelaunch-bond-factsheet/968
https://www.bondsupermart.com/main/article/Cache-Logistics-Trust-SGD-Perp-NC5-at-575-Guidance-496

Not announced by Cache on SGX yet, but should be coming soon.

 

[sgdividends]

According to Bond Supermart, this is actually a perpetual, not a bond. Guidance is 5.75% but no size reported. It is callable within 5 years with no coupon step-up and non-cumulative.

https://www.bondsupermart.com/main/bond-news/prelaunch-bond-factsheet/968
https://www.bondsupermart.com/main/article/Cache-Logistics-Trust-SGD-Perp-NC5-at-575-Guidance-496

Not announced by Cache on SGX yet, but should be coming soon.

Eh quite lousy leh.
I mean industrial properties have a limited lifespan right like 60 or 30 to..then perpetual some more and no step up or non cumulative ..

My broker keep pestering me to buy UBS perp 6% area one with loss absorption feature...siao

So many perps. Avoid perps

 

[lzydata]

Now announced by Cache. It is now a 5.50% perpetual, $100m, first reset date 5 years after issue (2023).

http://infopub.sgx.com/FileOpen/Cache_Issue%20of%20S$100m%20Subordinated%20PERPS.ashx?App=Announcement&FileID=486535