Digistar unit to issue up to RM80m bonds

TheEdge Wed, Dec 20, 2017 11:04pm - 6 years View Original


KUALA LUMPUR (Dec 20): Digistar Corp Bhd's wholly-owned subsidiary Jaya Persada Sdn Bhd has proposed to issue unrated fixed rate serial bonds of up to RM80 million.

The proposed bond issuance will have tenure of up to 14 years over three tranches. The proposed issuance will not be later than 60 business days from the date of lodgement of the lodgement kit with Securities Commission Malaysia (SC).

In a filing with Bursa Malaysia, Digistar said the application for the bonds has been lodged with the SC.

"Jaya Persada will utilise the proceeds from the issuance to fund the minimum balance as required under the financing agreements, to fund the costs and expenses incurred in respect of the establishment/issuance of the bonds.

"(It will also) advance proceeds from the issuance of the bonds to Digistar’s other wholly-owned unit, Seni Pujaan Sdn Bhd, for refinancing of existing banking facility, expansion and refurbishment of Imperial Heritage Hotel, as well as [issuance of the] advance to Digistar for its expansion of the JKR projects and/or for its working capital," the filing added.

MIDF Amanah Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the proposed bond issuance, while Pacific Alliance Capital Sdn Bhd will act as the corporate management consultant, providing corporate management consultancy services to Jaya Persada.

Digistar shares closed up 0.5 sen or 4% at 13 sen today, with 493,000 shares done, bringing it to a market capitalisation of RM84.63 million.

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