SINGAPORE (THE BUSINESS TIMES) – The indirect wholly owned subsidiary of Singapore Press Holdings (SPH) in Great Britain, Privilege Midco, issued and listed approximately Â£ 83.2 million (S $ 155.72 million) in Unsecured Loan Notes on the List of the International Stock Exchange (TISE).
The Notes were issued at an issue price of 100 percent of their principal amount, in registered form and in whole multiples of one pence, to Privilege Midco’s sole shareholder, Straits Ten. Straits Ten is an indirect wholly owned subsidiary of SPH, which publishes The Straits Times.
Ratings are direct, unconditional and unsubordinate. They bear a coupon of 3.27% per year, payable quarterly in arrears and redeemable on demand.
The proceeds from the notes will be used to establish intra-group loan agreements linked to an internal restructuring exercise aimed at transferring three purpose-built homes from a Luxembourg holding structure to a UK holding structure. These properties are located in Leeds, Sheffield and Southampton.
Following the listing of the notes, Privilege Midco will provide shareholder loans to its subsidiaries in Great Britain, namely Privilege L&S and Privilege Southampton.
The proceeds from the shareholder loans, together with the proceeds from the Â£ 54.4 million equity injections by Privilege Midco to its UK subsidiaries, will be used to finance the acquisition of the aforementioned properties.
Carey Olsen Corporate Finance has been appointed listing agent for the transaction.
SPH shares were trading at $ 1.79 at 9:05 a.m. on Wednesday after the announcement.