PROPERTY developer Oxley Holdings has received an investment of S$106.4 million through a convertible note issuance to funds managed by Dignari Capital Partners (DCP), a private-equity firm based in Hong Kong.
The convertible notes, with an aggregate principal amount of up to US$80 million, will bear a coupon interest of 4.5 per cent per annum – calculated on an actual/360 day count basis – and is payable semi-annually.
The maturity is 24 months with an option to extend by another 12 months, said Oxley in a pre-market filing on Thursday.
The notes can be converted into shares at an approximately 15 per cent premium to the volume-weighted average price per share 10 trading days prior to the date of the agreement.
For illustrative purposes and based on Oxley’s financial statements for FY2020, the issue of new shares under the terms of the convertible notes would dilute the group’s loss per share to 6.09 Singapore cents, from 6.7 cents previously.
Net tangible assets per share would remain unchanged at 0.24 Singapore cents.
In its regulatory filing, Oxley says it believes that DCP, as a strategic investor with over US$1 billion in assets under management, will strengthen the group’s financing capabilities in the future.
The developer intends to use all the estimated US$79.5 million of net proceeds from the convertible notes for working capital and general corporate purposes.
“We look forward to a fulfilling partnership together where we hope to leverage DCP’s expertise and full support to accelerate the growth of the company,” said Ching Chiat Kwong, chairman and chief executive of Oxley Holdings.
” I am confident that DCP Funds’ investment will position the company for our next phase of growth, where we launch into our key overseas projects,” he added.
Shares of the group closed 1.5 Singapore cents or 6.8 per cent higher at 23.5 cents on Thursday.
Source: The Business Times