Hong Kong: Debt-laden Titan Petrochemicals Group of Hong Kong said Tuesday it plans to restructure US$315.4 million worth of 8.50% guaranteed senior notes due 2012 to improve its capital structure and extend the notes' maturity.
For each US$1,000 in principal of the existing notes, the Hong Kong-listed oil trader and shipper said in a statement it proposes to offer: US$199.00 in principal of new notes due 2015, 3,075 new shares and a cash payment of US$12.50.
Under the offer, the aggregate principal of the new senior notes due 2015 would be US$62.8 million. The company would also issue up to 969.7 million new shares, or about 12.9% of its enlarged share capital.
The annual interest rate on the new notes would be 8.50%, the statement said.
Titan said it appointed Goldman Sachs (Asia) LLC and ING Bank NV Singapore Branch, as co-dealer managers for the note restructuring and to solicit consent from the note holders.
Titan is suffering from investing in too much at the peak of the cycle. As well as a slew of tankers it invested in a shipyard in China and numerous oil depots. [09/12/09]
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