Unhappy bondholders of Fraser and Neave (F&N) are fretting that the conglomerate could play hardball and accept default rather than pay more to obtain waivers for the listing of its property business.

November 8, 2013 Leave a comment

PUBLISHED NOVEMBER 08, 2013

Bondholders rattled as F&N plays tough

They feel it’ll be willing to push ahead with FCL listing and enter technical default

KENNETH LIM KENLIM@SPH.COM.SG

F&N, a beverage and property conglomerate, is asking holders of about $808.25 million of bonds to waive certain default terms on their notes and to allow the company to buy back the bonds at par plus half the coupon plus accrued interest – PHOTO: REUTERS

[SINGAPORE] Unhappy bondholders of Fraser and Neave (F&N) are fretting that the conglomerate could play hardball and accept default rather than pay more to obtain waivers for the listing of its property business. But observers said that for F&N to do so would be highly unusual, mostly because such an extreme solution usually comes with very high costs. F&N, a beverage and property conglomerate, is asking holders of about $808.25 million of bonds to waive certain default terms on their notes and to allow the company to buy back the bonds at par plus half the coupon plus accrued interest. Getting those waivers will allow F&N to split off and list its Frasers Centrepoint (FCL) property business without triggering a technical default. Early-bird acceptances tendered by yesterday’s close would have received an additional $625 per $250,000 of notes, while acceptances tendered from today to Nov 12 will receive $375 per $250,000 of notes held.

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