The proceeds will be used for general corporate purchases, a concurrent repurchase of shares and possible acquisitions
[SINGAPORE] Grab announced on Wednesday (Jun 11) that its five-year convertible note offering has been upsized to US$1.5 billion from US$1.25 billion.
The initial conversion rate of the notes will be 152.6 Class A ordinary shares for every US$1,000 principal amount equivalent to an initial conversion price of around US$6.55 per Class A ordinary share. This is a premium of about 40 per cent above the closing price of US$4.68 on Tuesday.
The proceeds will be used for general corporate purchases, a concurrent repurchase of shares and possible acquisitions. Grab and GoTo were recently rumoured to be in talks to merge before both issued disclosures saying otherwise on Tuesday.
Grab plans to repurchase Class A ordinary shares worth about US$273.5 million from certain purchasers of the notes in an off-market transaction for a price of US$4.68 per share – the closing price on Tuesday. This purchase will be made under Grab’s US$500 million share buyback programme.
The bond will be listed on the Singapore Exchange and will be the largest equity-linked offering.
The conversion rate is subject to adjustment. On or after Jun 21, 2028, Grab may redeem all or part of the notes for cash if the last reported Class A ordinary share price has been at least 130 per cent of the conversion price for at least 20 trading days during a 30 consecutive trading-day period. The notes may also be redeemed if less than 10 per cent of the aggregate principal amount of notes originally issued remains outstanding.
Noteholders will have the option to require the company to repurchase for cash all or part of their notes at a price equal to the principal amount plus accrued and unpaid interest.
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