Symphony International Holdings Ltd Update on Minor International PCL (7904Q)

TIDMSIHL

RNS Number : 7904Q

Symphony International Holdings Ltd

23 June 2020

Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful.

Symphony International Holdings Limited ("Symphony")

23 June 2020

Update on Minor International PCL

Symphony International Holdings Limited (LSE: SIHL) is pleased to announce that Minor International Pcl ("MINT"), Symphony's largest portfolio investment, successfully raised US$300 million from the issuance of US dollar perpetual bonds. The issue was oversubscribed and predominately allocated to fund managers and insurers. The demand for the issue is indicative of the market's confidence in MINT. This capital raise will be used to refinance existing debts and for working capital purposes.

MINT's announcement is reproduced below.

MINOR INTERNATIONAL PCL

   PRESS RELEASE - 23 June 2020                                  FOR IMMEDIATE RELEASE 

MINT SUCCESSFULLY ISSUED USD PERPETUAL BONDS

Minor International Public Company Limited ("MINT") is pleased to announce its success in offering USD perpetual bonds in the international bond markets, raising USD 300 million in Perpetual Non-Call 3-Year Senior Ranking Guaranteed Securities ("the Securities"). The Securities with ratings of Baa2 by Moody's and BBB by Fitch Ratings, have an unconditional and irrevocable guarantee from Bangkok Bank Pcl. acting through its Hong Kong branch. The transaction priced at a yield of 3.10%, some 70bps inside initial price guidance supported by an outstanding 11x over-subscribed book at the peak of bookbuilding with strong support from international investors, reflecting the market's confidence in MINT. 88% of the bonds were allocated to Asian accounts with the remaining 12% to European accounts. Approximately 87% of the bonds were allocated to fund managers and insurers. The proceeds of the Securities will be utilized to refinance the existing debts and for working capital purposes. The Securities will be treated as equity on MINT's balance sheet under the accounting standard - TAS 32. HSBC acted as Sole Global Coordinator and together with ANZ, BofA Securities and Standard Chartered Bank, as Joint Bookrunners on this transaction.

The perpetual bonds issuance is part of MINT's comprehensive capital structure plan announced earlier. In addition to the successful issuance of the perpetual bonds in the equivalent amount of approximately Baht 9.5 billion, on Friday, June 19, the annual general meeting of shareholders has approved the capital increase plan, which includes a rights offering of Baht 10 billion and warrants with a maturity of 3 years in the amount of Baht 5 billion. The rights offering will be completed and warrants with maturity of three years will be issued, both in the third quarter of 2020. The combined Baht 25 billion capital plan of the three instruments will provide MINT with liquidity during the uncertain times of COVID-19 pandemic, as well as improve its balance sheet with the increased equity base. With such prudent capital management, MINT's balance sheet will be strengthened as interest-bearing debt to equity ratio is expected to be managed down to its internal policy of 1.3x by the end of 2020. This will further help MINT to be well-positioned to capitalize on growth opportunities in its key markets globally after the COVID-19 pandemic has subsided. Furthermore, as another layer of buffer to manage its capital structure, MINT has successfully obtained approval from all of its creditors, both bondholders and bank creditors, for waiver consent on its debt covenant testing for its interest-bearing-debt-to-equity ratio of not more than 1.75x for the next three quarters, throughout 2020.

"We are delighted with the success of this perpetual bond offering transaction which is a testimony of market's support of MINT and our balance sheet strengthening strategy. Next step for us is to complete the capital raising exercise as planned," commented Brian Delaney, Group CFO of Minor International. "We have already passed the worst point of this pandemic in April. It is time for us to march forward and upward. We are in the process of putting in place "Business Beyond COVID" plans for all three businesses to adapt and rebuild, in order to reflect the change of consumers' behavior. Most importantly, we maintain our commitment to stay agile in order to maximize shareholders' return."

"We are delighted with the success of this perpetual bond offering transaction which is a testimony of market's support of MINT and our balance sheet strengthening strategy. Next step for us is to complete the capital raising exercise as planned," commented Brian Delaney, Group CFO of Minor International. "We have already passed the worst point of this pandemic in April. It is time for us to march forward and upward. We are in the process of putting in place "Business Beyond COVID" plans for all three businesses to adapt and rebuild, in order to reflect the change of consumers' behavior. Most importantly, we maintain our commitment to stay agile in order to maximize shareholders' return."

About Minor International : Minor International (MINT) is a global company focused on three core businesses: hospitality, restaurants and lifestyle brands distribution. MINT is a hotel owner, operator and investor with a portfolio of 530 hotels under the Anantara, Avani, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands in 55 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South and North America. MINT is also one of Asia's largest restaurant companies with over 2,300 outlets system-wide in 26 countries under The Pizza Company, The Coffee Club, Riverside, Benihana, Thai Express, Bonchon, Swensen's, Sizzler, Dairy Queen and Burger King. MINT is one of Thailand's largest distributors of lifestyle brands and contract manufacturers. Its brands include Anello, Bodum, Bossini, Brooks Brothers, Charles & Keith, Esprit, Etam, Joseph Joseph, OVS, Radley, Scomadi, Zwilling J.A. Henckels and Minor Smart Kids. For more information, please visit www.minor.com.

For further information:

   Chaiyapat Paitoon / Jutatip Adulbhan       [phone] 

Minor International Pcl

   Symphony Asia Holdings Pte. Ltd.           [phone] 

Anil Thadani

Rajgopal Rajkumar

Dealing codes

The ISIN number of the Ordinary Shares is VGG548121059, the SEDOL code is B231M63 and the TIDM is SIHL.

The LEI number of the Company is 254900MQE84GV5DS6F03.

About Symphony

Symphony International Holdings Limited (LSE:SIHL) is a London listed strategic investment company that invests in consumer related businesses, primarily in the healthcare, hospitality, lifestyle (including branded real estate developments), logistics and education sectors predominantly in Asia. It offers a way for investors to gain exposure to rising disposable incomes and wealth in fast growing economies. Symphony's objective is to provide superior capital growth by investing in high quality companies and form long-term business partnerships with talented entrepreneurs and management teams. Symphony's investment team has a broad range of expertise - many of its professionals have been working in Asia for more than 30 years. For more information please visit our website at www.symphonyasia.com.

No representation or warranty is made by the Company as to the accuracy or completeness of the information contained in this announcement and no liability will be accepted for any loss arising from its use.

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of the Company in any jurisdiction. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.

This announcement is not an offer of securities for sale into the United States. The Company's securities have not been, and will not be, registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public

offer of securities in   the United States. 

The Company and the Investment Manager are not associated or affiliated with any other fund managers whose names include "Symphony", including, without limitation, Symphony Financial Partners Co., Ltd.

End of Announcement

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June 23, 2020 05:02 ET (09:02 GMT)