SEATRIUM : S51 0% on Friday (Apr 26) said its subsidiary, Seatrium Offshore & Marine, has given notice to bondholders of its S$500 million floating-rate bonds that it aims to fully redeem these bonds prior to the scheduled maturity date at its principal amount, together with accrued and unpaid interest.
The S$500 million bonds due 2026 are expected to be redeemed in full on May 27, and will be cancelled thereafter, the group said in a bourse filing.
The early redemption of the bonds is part of the offshore and marine company’s capital management efforts to optimise its borrowing cost and debt profile.
To recap, the S$500 million bonds were issued by Seatrium Offshore & Marine, then known as Keppel Offshore & Marine, on Feb 27 last year.
The bonds were issued to finance a S$500 million payment Seatrium Offshore & Marine made to Keppel, in order to settle outstanding interest and make a redemption of certain perpetual securities previously issued to Keppel.
DBS was the lead manager in the bond issuance.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
After Seatrium Offshore & Marine became a wholly owned subsidiary of Seatrium – which was formerly known as Sembcorp Marine – the mainboard-listed group entered into a deed of guarantee on Aug 18, 2023, to guarantee the payment obligations of Seatrium Offshore & Marine under the bonds, from and including the deed’s date of execution.
The terms of the bonds included a right on the part of Seatrium Offshore & Marine to early redemption of the floating-rate bonds prior to the scheduled maturity date.
Seatrium said the early bond redemption will not have a material adverse effect on its financial position or business operations.
Shares of Seatrium ended 1.1 per cent or S$0.001 higher at S$0.089 on Friday, before the announcement.