First Resources: New US$100m CB to have 7% dilution

Monday, September 7, 2009

First Resources today announced the issuance of US$100m new Convertible Bonds (CB) with 5.625% coupon and conversion price of S$1.24735/share using fixed exchange rate of S$1.4479/USD. The tenor for the CB is 5 years (maturity date 22 September 2014) at 104.34%; with a put option in 3 years' time (22 September 2012) at 102.44% (yield to put: 6.375%).

As a result of the issuance, the group's net gearing is estimated to decline slightly to 0.23x from 0.26x as at 30 June 2009 after accounting for the value of the equity portion of the CB, minus cash received (net of issuance cost).

Upon full conversion, the CB would represent 116,078,086 new shares, or 7.3% potential dilution - to the current share price (excluding net interest) or to S$1.02 in our TP (from S$1.10). We will account for the dilution when it is in the money.

We are maintaining our Hold call on the stock with TP S$1.10.


Click here for more Commodity Stocks Technical Analysis

Sponsored Links



Related Posts by Categories



Labels:

Comments

No response to “First Resources: New US$100m CB to have 7% dilution”
Post a Comment | Post Comments (Atom)

Post a Comment

Disclaimers

These articles are neither an offer nor the solicitation of an offer to sell or purchase any investment. Its contents are based on information obtained from sources believed to be reliable and we make no representation and accepts no responsibility or liability as to its completeness or accuracy. We share them here as they are very informative, we claim no rights to these articles. If you own these articles, and do not wish to share it here, please do inform us by putting a comment and we will remove them immediately. We do not have any intentions to infringe any copyrights of yours. This is a place to keep record on the analyst recommendation for our own future references. We hope this serves as a record in the future, also make them searchable. We bear no responsibility for any profit, loss generated from these reports.
 
Citrus Pink Blogger Theme Design By LawnyDesignz Powered by Blogger