Most diversified blue chip Hayleys PLC is to raise Rs. 3 billion via a listed debenture issue to restructure its debt portfolio by refinancing its short term borrowings.
It will issue 20 million listed rated unsecured senior redeemable five year debentures of Rs. 100 each with an option to offer a further 10 million debentures in the event of the oversubscription of the initial amount.
The debenture issue officially opens on 20 August but is up for subscription now. Debenture Type A offers a Fixed Coupon Rate of 13.00% p.a. payable semi-annually (AER: 13.42%) and Type B offers Floating Coupon Rate of AWPLR+2.00% per annum, payable semi-annually.
Proceeds from the first tranche of the issue would be utilized to settle the outstanding balances in Sampath Bank (Rs. 450 million), NDB Bank (Rs. 150 million), Commercial Bank (Rs. 442 million), Seylan Bank (Rs. 200 million), NSB (Rs. 250 million), People’s Bank (Rs. 250 million), DFCC (Rs. 50 million) and up to Rs. 208 million (of Rs. 375 million) of HNB. The second tranche of the issue would be used to settle the remaining balance of HNB, Standard Chartered Bank (Rs. 164 million) and BOC overdraft (Rs. 712.7 million) in line with the issue proceeds.
Total value of borrowings as at 30 June 2019 for Hayleys PLC stands at Rs. 24.99 billion.
The debenture issue’s joint managers are Capital Alliance Partners Ltd., and People’s Bank Investment Banking Unit. The debenture is rated ‘[SL] A+ (Stable)’ by ICRA Lanka Ltd.