Courts Asia issues S$125m notes for debt repayment, general spending

Issuance slated for May 2.

Mainboard-listed Courts Asia Limited (Courts Asia), one of the leading electrical, IT and furniture retailers in Singapore and Malaysia, announced that it will be issuing S$125 million notes (the "Notes") under the S$500 million Multicurrency Debt Issuance Programme it established on April 23, 2013. The Notes will be issued at a price that is 100% of their principal amount. They will bear interest at a fixed rate of 4.75% per annum, payable semi-annually in arrear and have a tenor of three years. The Notes are expected to be issued on May 2, 2013 and are expected to be listed on Singapore Exchange Securities Trading Limited on or about May 3, 2013.

Courts Asia’s Executive Director and Group Chief Executive Officer, Mr Terence Donald O’Connor, said: “This successful exercise shows the strength of the Courts brand and the faith of investors. We are now well positioned to look at the next three years with confidence as we seek to execute on our vision for Courts in Asia and implement our strategic plan.”

Net proceeds from the exercise will be used to repay existing borrowings and / or finance the general corporate purposes of the Group DBS Bank Ltd. (DBS) and The Hongkong and Shanghai Banking Corporation Limited (HSBC) have been appointed to act as the joint lead managers and bookrunners for the issue of the Notes.

Mr Clifford Lee, Head of Fixed Income at DBS, said: “We are honoured to lead this landmark transaction for Courts Asia. The overwhelming support from investors is a testament to the strong branding and credit strength of the Company.”

Mr Jason Khoo, Head of Debt Capital Markets South East Asia at HSBC, said:"Courts’ highly successful SGD bond debut has been strongly received by both domestic and offshore investors, which attracted a robust orderbook of SG2.1bn and 92 investors. This represents a resounding testimony of investor receptivity to the Courts brand name. HSBC is truly honoured to have had the opportunity to act as a lead manager and bookrunner on this transaction."