KrisEnergy improves coupon payment in its restructuring bid

Cash coupon was raised to 4% from 2% from the fifth coupon.

KrisEnergy has enhanced the coupon payment for its new bonds as it seeks to restructure S$330m of bonds due 2017 and 2018.

KrisEnergy is asking its noteholders to exchange their existing bonds at full face value for new notes that mature five years later, between 2022 and 2023.

It raised the cash coupon from 2%to 4% from the fifth coupon, or the third year, onwards.

It also added an additional oil-price linked coupon that allows noteholders to earn up to 3% more in interest-tiered in a step-up manner  if oil prices rise above US$70 a barrel during the five-year tenure.

This means that noteholders will stand to earn up to 7% in interest a year in total, if oil prices exceed US$90 a barrel