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Singapore Bonds

Market whisper: Debt reorganization in the pipeline. Industry expected to response to potential unwinding of Noble' s derivatives. Institutional investors scalded by Noble Bonds issued in March 2017, trading at 60% below par. Perp bonds crashed to new low of 85% below par after trading halt. Retail investors wiped out by 2017 share consolidation and 2016 rights issue.

Noble Group `Fighting for Its Life'
https://www.bloomberg.com/news/articles/2017-05-22/noble-at-risk-of-debt-default-as-distress-spreads-s-p-says
Moody' s Investors Service      Caa1 Outlook: Negative
S& P Global Ratings      CCC+ Outlook: Negative

 

MarcPh      ( Date: 23-May-2017 07:54) Posted: Noble perp bonds hit a new historical low of 80% below par as news emerged that that Sinochem no longer pursuing stake in Noble Group. Rumours emerged that the industry is concerned about the unwinding of Noble' s swaps and hedges in a potential collapse if new syndicate-loan is not secured. Noble Group investors brace for heavy losses as bond prices fall https://www.ft.com/content/64517528-3ef8-11e7-9d56-25f963e998b2 Sinochem no longer pursuing stake buy in Noble Group https://www.reuters.com/article/us-noble-m-a-sinochem-idUSKBN18I0X4   MarcPh      ( Date: 20-May-2017 13:11) Posted: Noble 2020 perp bonds crashed to end the week at 70% below par after inconclusive talks with bankers & IE Singapore.

 

Noble perp bonds hit a new historical low of 80% below par as news emerged that that Sinochem no longer pursuing stake in Noble Group. Rumours emerged that the industry is concerned about the unwinding of Noble' s swaps and hedges in a potential collapse if new syndicate-loan is not secured.


Noble Group investors brace for heavy losses as bond prices fall
https://www.ft.com/content/64517528-3ef8-11e7-9d56-25f963e998b2

Sinochem no longer pursuing stake buy in Noble Group
https://www.reuters.com/article/us-noble-m-a-sinochem-idUSKBN18I0X4
 

MarcPh      ( Date: 20-May-2017 13:11) Posted: Noble 2020 perp bonds crashed to end the week at 70% below par after inconclusive talks with bankers & IE Singapore. MarcPh      ( Date: 20-May-2017 12:29) Posted: market whisper: Little progress in talks between bankers and Noble Group till this weekend after IE Singapore' s intervention

 

Earlier, we discussed about Geo Energy Resources (not a buy recommendation) vs Noble in coal business.

 

 

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jm2212      ( Date: 22-May-2017 06:32) Posted: Bros... i only quoted the lucky ones... i loss my pants on some until cried no tears. My goal now is to build a portfolio which can generate sufficient passive income MarcPh      ( Date: 21-May-2017 22:45) Posted: Yes, I am so envious. I am tired

 

Yet another company which falls into the problems of weak liquidity plus weak cash generation from its businesses. The company proposed to convert a bond of S$110m coming due in 2018 and also a loan from Ezion Holdings of S$40.6m which total amounts to about $150m worth of debts to be converted to equity. The rationale given is to improve balance sheet strength, improve the comapny' s overall ability to raise funds from financial markets, reduce interest costs and improve the perception of company by its customers, suppliers, employees and stakeholders. An EGM will be convened to ask for approval by shareholders for the proposed debt-to-equity conversion. 

However, given AusGroup' s current share capital of S$132m, if the bond and loan from Ezion Holdings (total value of about S$150m) are all converted into new shares, it will be mean massive dilution to the share ownership for existing shareholders of AusGroup even on a conversion price of 6% premium to recent weighted-average share price. But, perhaps it has to be done this way in view of the current weak liquidity and weakened cash generation in AusGroup' s businesses.      

MarcPh      ( Date: 22-May-2017 10:59) Posted: Ausgroup proposes new share issues to exchange for outstanding bonds to shore up capital base and reduce debts. http://infopub.sgx.com/FileOpen/Debt-to-equity%20Conversion%20Media%20Release.ashx?App=Announcement& FileID=454695 Instead of being offered a discount to recent weighted-average share price, the conversion price is about 6% premium.

 

Ausgroup proposes new share issues to exchange for outstanding bonds to shore up capital base and reduce debts.
http://infopub.sgx.com/FileOpen/Debt-to-equity%20Conversion%20Media%20Release.ashx?App=Announcement& FileID=454695

Instead of being offered a discount to recent weighted-average share price, the conversion price is about 6% premium.

 

Bros... i only quoted the lucky ones... i loss my pants on some until cried no tears. My goal now is to build a portfolio which can generate sufficient passive income

MarcPh      ( Date: 21-May-2017 22:45) Posted: Yes, I am so envious. I am tired. famouspinky      ( Date: 21-May-2017 22:43) Posted: Yup most tell me abt needing Luc

 

Thanks, Marc. You' d quoted IE Singapore. How are they related to this saga/deal?

MarcPh      ( Date: 21-May-2017 22:53) Posted: https://www.ft.com/content/235af5a6-3991-11e7-ac89-b01cc67cfeec     One banker involved in the talks said if the loans was renewed, his group will not be among the participating lender under guidance of his risk department. Noble declined to comment. Another key test for Noble and its ability to cope with its debt load will come next year when it must find US$1.5bn to repay a US$379 bond and a US$1.14bn loan. " The market has no confidence in the business model" , say one banker with exposure to a Noble loan maturing next year. " No matter what they say or do, the results don' t get better." MarcPh      ( Date: 20-May-2017 13:11) Posted: Noble 2020 perp bonds crashed to end the week at 70% below par after inconclusive talks with bankers & IE Singapore.

 

No, good Brother. In banking, we have strict compliance rules, but for the biggest corporations, we can bend the rules for them, even in our leading local banks

On personal front, I lose until scared liao.

famouspinky      ( Date: 21-May-2017 22:53) Posted: Henced i had always asked myself is luck really impt? Yes indeed. Big bro set rules but did not follow rules. Now, is too late liao. All closing shops. famouspinky      ( Date: 21-May-2017 22:43) Posted: Yup most tell me abt needing Luc

 

When this counter at $2, i already mentioned tt its empty shell. Its amazing tt demand can push it to $2. Same with blumont. Really knw how to create fairy tales.

MarcPh      ( Date: 21-May-2017 22:53) Posted: https://www.ft.com/content/235af5a6-3991-11e7-ac89-b01cc67cfeec     One banker involved in the talks said if the loans was renewed, his group will not be among the participating lender under guidance of his risk department. Noble declined to comment. Another key test for Noble and its ability to cope with its debt load will come next year when it must find US$1.5bn to repay a US$379 bond and a US$1.14bn loan. " The market has no confidence in the business model" , say one banker with exposure to a Noble loan maturing next year. " No matter what they say or do, the results don' t get better." MarcPh      ( Date: 20-May-2017 13:11) Posted: Noble 2020 perp bonds crashed to end the week at 70% below par after inconclusive talks with bankers & IE Singapore.

 

https://www.ft.com/content/235af5a6-3991-11e7-ac89-b01cc67cfeec

MarcPh      ( Date: 20-May-2017 13:11) Posted: Noble 2020 perp bonds crashed to end the week at 70% below par after inconclusive talks with bankers & IE Singapore. MarcPh      ( Date: 20-May-2017 12:29) Posted: market whisper: Little progress in talks between bankers and Noble Group till this weekend after IE Singapore' s intervention

 

Henced i had always asked myself is luck really impt? Yes indeed. Big bro set rules but did not follow rules. Now, is too late liao. All closing shops.

famouspinky      ( Date: 21-May-2017 22:43) Posted: Yup most tell me abt needing Luck MarcPh      ( Date: 21-May-2017 22:31) Posted: I don' t have such luck. As I grow older, I realised that luck is very important in investments. You can lose money on the companies with the best fundamentals and make multifolds on pennies with negative NTA if you are blessed. It got nothing to do with your deeds in life. These days, I realised I am happier spending my money on drinking than losing more in shares

 

When Temesek has no Luck. Pointless to put money there although fundamental super strong But what happened? A pilot who did everythg except fly hia Plane.

famouspinky      ( Date: 21-May-2017 22:43) Posted: Yup most tell me abt needing Luck MarcPh      ( Date: 21-May-2017 22:31) Posted: I don' t have such luck. As I grow older, I realised that luck is very important in investments. You can lose money on the companies with the best fundamentals and make multifolds on pennies with negative NTA if you are blessed. It got nothing to do with your deeds in life. These days, I realised I am happier spending my money on drinking than losing more in shares

 

Yes, I am so envious.
I am tired.

famouspinky      ( Date: 21-May-2017 22:43) Posted: Yup most tell me abt needing Luck MarcPh      ( Date: 21-May-2017 22:31) Posted: I don' t have such luck. As I grow older, I realised that luck is very important in investments. You can lose money on the companies with the best fundamentals and make multifolds on pennies with negative NTA if you are blessed. It got nothing to do with your deeds in life. These days, I realised I am happier spending my money on drinking than losing more in shares

 

Yup most tell me abt needing Luck

MarcPh      ( Date: 21-May-2017 22:31) Posted: I don' t have such luck. As I grow older, I realised that luck is very important in investments. You can lose money on the companies with the best fundamentals and make multifolds on pennies with negative NTA if you are blessed. It got nothing to do with your deeds in life. These days, I realised I am happier spending my money on drinking than losing more in shares. jm2212      ( Date: 20-May-2017 16:44) Posted: Think about my bond venture really lucky. Bot Swinber bond got redeemed before their financial trouble went out of control, bot otto marine bond and thought jiatlat liao, then owner took it private (but the devidend made from 2 years loss on the otto marine mother share though)

 

Thank you for your understanding good Brother.

Anyway it is not privilege information by now, the news is out
https://www.ft.com/content/235af5a6-3991-11e7-ac89-b01cc67cfeec

famouspinky      ( Date: 20-May-2017 15:26) Posted: Ps la mai hai lang TenPips      ( Date: 20-May-2017 14:12) Posted: Do you know why IE is in the picture

 

I don' t have such luck. As I grow older, I realised that luck is very important in investments. You can lose money on the companies with the best fundamentals and make multifolds on pennies with negative NTA if you are blessed. It got nothing to do with your deeds in life. These days, I realised I am happier spending my money on drinking than losing more in shares.

jm2212      ( Date: 20-May-2017 16:44) Posted: Think about my bond venture really lucky. Bot Swinber bond got redeemed before their financial trouble went out of control, bot otto marine bond and thought jiatlat liao, then owner took it private (but the devidend made from 2 years loss on the otto marine mother share though)

 

Think about my bond venture really lucky. Bot Swinber bond got redeemed before their financial trouble went out of control, bot otto marine bond and thought jiatlat liao, then owner took it private (but the devidend made from 2 years loss on the otto marine mother share though)

 

Hope 4 white Knight

 

Ps la mai hai lang

TenPips      ( Date: 20-May-2017 14:12) Posted: Do you know why IE is in the picture? MarcPh      ( Date: 20-May-2017 13:11) Posted: Noble 2020 perp bonds crashed to end the week at 70% below par after inconclusive talks with bankers & IE Singapore.