The takeover of ARA Asset Management by ESR Cayman has triggered a change of control (CoC) event on ARA’s dollar bonds. ARA’s S$300mn 5.2% Perp would see a 300bp coupon step-up from July 19 due to the CoC, which is also the Perp’s first call date. IFR notes that the Perp is likely to be called and redeemed then. ARA’s S$100mn 4.15% 2024s have a put option that will require ARA Asset to redeem the notes, if the investors choose to exercise the option. Separately, ESR Cayman has secured a sustainability-linked loan of ¥28bn ($329.3 million) on January 30 with an aim to strengthen its commitment in ESG following the ARA acquisition. The 5Y loan will see ESR being entitled to a reduction of interest rates once it achieves its sustainability targets. Proceeds will be used to fund the group’s refinancing of existing borrowings, working capital requirements and for general corporate purposes.
ARA’s SGD 5.2% Perp was flat at 99.94, yielding 5.33% while ESR’s SGD 4.6% Perp was also flat at 98.92, yielding 6.1%
Times China bought back $22.7mn of its 5.75% 2022s and $20mn of its 5.3% 2022s between January 10 and January 28. The new outstanding amounts will be $202.3mn for the 5.75% 2022s and $180mn for the 5.3% 2022s. Times China said that the buyback will reduce future financial expenses and lower its financial gearing level, adding that it may conduct further repurchases when appropriate. Times China’s dollar bonds are trading stable between 45-51 cents on the dollar.