Raffles Education Limited has announced a proposed refinancing exercise aimed at replacing existing debt with new long-term securities. The company intends to buy back S$35.03m of existing convertible bonds held by Chew Hua Seng and Doris Chung Gim Lian, replacing them with new five-year, non-convertible unsecured bonds at a reduced coupon rate of 5.5%. This move, which extends the company’s debt maturity by five years, is designed to provide greater financial flexibility.
The refinancing package includes 538.9 million detachable warrants, each allowing the holder to purchase a new share at S$0.065. The proposal is subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM).
In addition, Raffles Education plans to declare a special interim dividend of S$0.003 per ordinary share, contingent upon the approval of the refinancing proposal. This dividend aims to share the benefits of cash preservation with all investors.
Chew Hua Seng, the company’s chairman and CEO, along with his spouse, Doris Chung, currently hold significant interests in the company. Their combined shareholding amounts to 43.16%, with Chew holding 33.44% directly and 9.72% through deemed interest.
The proposed refinancing and dividend are part of Raffles Education’s strategy to maintain its cash position and enhance shareholder value. The company will issue further details in a circular to shareholders in due course.
