DEAL: KrisEnergy’s triple capital restructuring

Author: Brian Yap | Published: 29 Mar 2017

The Singapore dollar bond market has witnessed the concurrent execution of three landmark capital restructuring exercises. But initial doubts over their feasibility posed a challenge to the issuer.

Singapore-based oil and gas company KrisEnergy successfully incorporated four capital restructuring features into a single debt refinancing exercise. These included a consent solicitation for the mandatory exchange of its 6.25% S$130 million ($92.9 million) notes due 2017 and 5.75% S$200 million senior unsecured notes due 2018 for two new corresponding sets of oil price-linked coupon-guaranteed, interest-accruing notes due 2022 and 2023 respectively. It also launched a S$139.5 million preferential offering of listed senior secured notes and equity warrants.

But the Singaporean issuer was faced with a challenge to prove to existing bondholders that the mandatory exchange exercise was legally and commercially viable.

"Even though the legal power existed under the terms of the trust deed,...



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