Courts Asia offers to buy back $75m worth of 5.75% notes due 2019

The firm's existing cash surplus will fund their offering.

Mainboard-listed Courts Asia is offering to buy back its S$75 million worth of 5.75 per cent notes due 2019 at 100.75 per cent of the principal amount, an announcement revealed.

The firm said that their existing cash surplus will be utilised for the buyback deal which will be managed by DBS.

“The proposed transaction is part of the company's continuing capital and liability management initiatives,” Courts Asia commented. “The company is of the view that it is prudent to explore the early redemption of the notes via this proposed transaction.”

Noteholders who will give their consent for the buyback before the early consent fee deadline at 5 pm on 13 July will be paid 0.25% of their principal amount whilst those who will agree to the deal after the said deadline will receive the 0.15% normal consent fee.

The buyback offer is set to end on 20 July.

Courts Asia said the proposed transaction is part of its continuing capital and liability management initiatives.