Hyflux receives EOI from New York fund manager

The private investment firm is willing to invest $204.78m or more.

Hyflux has received a formal expression of interest (EOI) from New York-based fund manager Strategic Growth Investments (SGI), the water treatment firm said in a bourse filing.

A copy of the email from SGI posted on the SGX website shows that the Delaware-incorporated private investment firm is prepared to invest $204.78m or more in Hyflux, structured as newly issued common equity.

Of these, $97m will be used to pay senior unsecured creditors on a pro-rata basis; $15.78m will be used to pay trade creditors on a pro-rata basis; and $32m will be paid to perpetual capital securities and preference shares securities (P&P) holders on a pro-rata basis, according to SGI.

Meanwhile, $60m is allotted for working capital and financing of any future corporate restructuring based on a value creation plan to be designed and implemented in close collaboration with SGI, SGI’s advisors The Spectrum Solutions Group (TSSG), and Hyflux.

SGI is also prepared to offer up to 15% of the equity in Hyflux post-investment in the form of warrants, with 5% of the equity going to the senior unsecured creditors and 10% going to the P&P holders.