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The Securities will bear an initial fixed distribution rate of 8.75% per annum for the first three years. The distribution rate will be subject to reset every three years and includes a one-time step-up from and including the first reset date, 18 September 2015. Additionally, Ezra may choose to redeem in whole the Securities on or after the third anniversary of the issuance. DBS Bank Ltd. and The Hongkong and Shanghai Banking Corporation Limited are the appointed dealers for the Securities. The issuance of the Securities was well received and the order book was multiple times oversubscribed with participation from more than 50 investors. In terms of geographical distribution, the allocation was primarily to Singapore based investors. In terms of investor classes, a substantial portion of the issue was allocated to private banks, with sizable interest from institutional investors and asset managers. The Group’s recent benchmark S$200 million, 5% 3-year fixed rate notes issued on 7 September 2012 also received strong interest from investors. The net proceeds of both issues will be used to refinance the Group’s existing borrowings, as well as for general working capital and general corporate purposes. Ezra’s Managing Director, Mr Lionel Lee (黎才德), said: “The strong appetite for our notes and securities in support of our efforts to strengthen our balance sheet reflects investor confidence in Ezra and our future. “By diversifying our sources of funding and extending our debt maturity profile, it positions the Group well ahead of any global uncertainties and allows Ezra to take advantage of the many opportunities we see in subsea construction and offshore support services.” Mr Clifford Lee, Head of Fixed Income at DBS, said: “This is indeed an important milestone for Ezra’s continuous efforts in setting its credit benchmark in the debt capital markets following its recent 3-year SGD note issue. The issuance of both the notes and perpetual securities has allowed Ezra to create a transparent SGD credit yield curve which will be useful for its future debt raising exercises. DBS is extremely proud to be part of this ground breaking transaction.” Mr Jason Khoo, Head of Debt Capital Markets, South East Asia at HSBC, said: “The strong investor response to Ezra’s perpetual securities issuance represents a clear endorsement of investor appetite for Ezra’s credit, and represents a strong testament to Ezra’s credit standing, following their successful SGD senior bond issue. The perpetual securities issuance enhances the company’s capital structure and is instrumental in providing the issuer with greater financial flexibility going forward.” As part of the Group’s long-term expansion strategy, its engineering and fabrication division TRIYARDS Holdings Pte. Ltd. is expected to list on the SGX-ST by way of introduction via a proposed dividend-in- specie. Ezra will retain a 67% stake in TRIYARDS and shareholders will vote on this proposed distribution at the Group’s extraordinary general meeting scheduled for 27 September 2012. On 6 September 2012, EMAS AMC, Ezra’s subsea division EMAS AMC announced a contract award from ABB for the installation of subsea power cables from the world’s largest natural gas production platform, the Troll A gas platform in the North Sea. ABOUT THE COMPANY EMAS – a leading global contracting group providing offshore/subsea construction, marine, production and well intervention services – is Ezra’s operating brand. With offices across five continents, it prides itself in having the right people and solutions for the oil and gas (O&G) industry by combining its global footprint and proven engineering skills with a diverse offering of premium assets and services designed to fully meet clients’ needs. Operating in unison, Ezra’s core divisions are able to execute a full spectrum of seabed-to-surface engineering, construction, marine and production services anywhere in the world. EMAS AMC – created after the acquisition of Aker Marine Contractors AS, a world leader in providing SURF (subsea umbilicals, risers & flowlines) and floater installations – delivers comprehensive seabed-to-surface solutions for the offshore sector, in particular the vibrant subsea segment. Offerings include subsea construction and FPSO installation. EMAS Energy provides well intervention and drilling services both onshore and offshore, offering fully integrated solutions that combine its marine assets with state-of-the-art intervention equipment and services. EMAS Marine manages and operates a young, versatile fleet of advanced offshore support vessels, offering an extensive range of maritime services that cater to the client’s needs throughout a field’s life cycle. It also manages EMAS AMC’s fleet of construction assets and third-party vessels. EMAS Production, under approximately 45.7%-owned EOC Limited, owns and operates cutting-edge FPSO (floating production, storage and offloading) facilities, offering services that support the post-exploration needs of offshore fields, such as FPSO conversion management. TRIYARDS is fast becoming an acknowledged leader in developing advanced and customised solutions for world-class vessels. By focusing on sophisticated platforms and equipment that can tackle even the most complex offshore projects, it has already established itself as a front runner in the fabrication of SEUs (self-elevating, mobile offshore units). TRIYARDS provides its integrated engineering, ship construction and fabrication services out of three yard facilities located in Vietnam and the US. Ezra Holdings Limited press release |
Ezra raises S$150 million fromissuance of perpetual securities