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Hyflux and partner, National Power and Water Co., LLC recently won a project tender in Oman worth US$250m.
Hope it sees more contract wins, it have been languishing with order books dry.
http://infopub.sgx.com/FileOpen/News%20R...eID=328834
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It is a small deal, but I am taking small deals as indicators of future big deal...
(not vested)
Hyflux seeks bondholders' approval to amend trust deed
SINGAPORE (Jan 13): Hyflux is seeking approval from bondholders to amend a trust deed relating to its $800-million multi-currency debt issuance programme.
Among other things, the water treatment firm wants to broaden the programme's interest cover covenant to include its unencumbered cash position.
It also wants to change the frequency of providing to DBS Bank ( Financial Dashboard), as trustee for the bondholders, certain compliance certificates to a semi-annual basis instead of the current quarterly basis.
Hyflux has issued $420 million worth of notes so far under the debt issuance programme.
Hyflux shares rose 1.1% to 92 cents yesterday
http://www.theedgemarkets.com/sg/article...trust-deed
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Hi Cy09,
I remember that some one on VB only gave a simple advise, buy preference share, skip the common share.
There is a good analysis at bullythebear on this. Same at Smol.
Broadly, at least over the last five years. They just borrow and use the debt to fund their negative cash flow.
But, crucially, the debt I.e. preference shares counts as equity and not debt.
Now, if interest rates rise, they might be in a spot of bother! But, rates have not budged in the last five years.
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
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More perpetual securities for the company?
(not vested)
Hyflux offering up to $300 mil in perpetual securities
SINGAPORE (May 17): Water company Hyflux is offering up to $300 million in perpetual capital securities.
The issue price of the securities is set at $1 each with a distribution payment rate of 6% per annum.
...
http://www.theedgemarkets.com/sg/article...securities
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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For those who are interested, please read Bully the bear's blog on this topic
http://bullythebear.blogspot.sg/2016/05/...z0-zPl97IU
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
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Aren't perpetual securities akin to common shares or equity in terms of risks to their holders?
With a return of only 6%pa, seriously, no thanks!
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19-05-2016, 12:58 PM
(This post was last modified: 19-05-2016, 01:00 PM by CY09.
Edit Reason: Edits
)
Perpetuals are ranked higher than ordinary shares and lower than bonds (secured and unsecured)
To me, there is value to this perpetuals as the holders will have claim to Hyflux's assets before common shareholders. Currently out of 3 Bil of Hyflux's assets, 367 mil belong to ordinary shareholders. As this tranche of proceeds is likely to be used to redeem existing bonds, new perpetual holders will have to ask is Hyflux assets able to withstand a 10% haircut and their ability to service the interest over the next 10 years. From its financial results, my answer is it is possible to pay its interest on bonds and distribution to perpetual share holders.
The situation is similar to Epicentre's recent junior (unsecured ) bond. 1) Bondholders are likely to be able to get a majority of their proceeds, 2) shareholders are likely to suffer or even to an extent enjoy dividends but a permanent loss on their initial invested capital
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