Summary of Proposed Offering - FinanzNachrichten.de
Summary of Proposed Offering - FinanzNachrichten.de
Summary of Proposed Offering - FinanzNachrichten.de
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tiger airways holdings limited<br />
announcement <strong>of</strong> rights issue<br />
and preferential <strong>of</strong>fering <strong>of</strong><br />
perpetual convertible capital securities<br />
5 March 2013<br />
Not for release, publication or distribution in the United States<br />
This presentation is not an <strong>of</strong>fer for sale <strong>of</strong> securities into the United States or elsewhere. The nil-paid rights, rights shares and convertible<br />
securities are not being registered un<strong>de</strong>r the United States Securities Act <strong>of</strong> 1933, as amen<strong>de</strong>d (the "Securities Act"), and may not be <strong>of</strong>fered<br />
or sold in the United States unless registered un<strong>de</strong>r the Securities Act or pursuant to an exemption from registration un<strong>de</strong>r the Securities Act.<br />
There will be no public <strong>of</strong>fering <strong>of</strong> securities in the United States.
1<br />
2<br />
3<br />
<strong>Summary</strong> <strong>of</strong> <strong>Proposed</strong> <strong>Offering</strong><br />
Rationale and Use <strong>of</strong> Proceeds<br />
Appendix<br />
1
<strong>Summary</strong> <strong>of</strong> <strong>Proposed</strong> <strong>Offering</strong><br />
Offer Structure<br />
Renounceable Rights Issue <strong>of</strong> Price: SGD 0.47<br />
Ordinary Shares<br />
Size: SGD 77M<br />
Discount: 30% to TERP and 34% to 4 March 2013 close <strong>of</strong> SGD 0.715<br />
Rights Ratio: 1 rights share for every 5 existing shares<br />
Non-Renounceable Preferential Issue Price: 100% <strong>of</strong> the principal amount <strong>of</strong> the PCCS at S$1.07 for each PCCS<br />
<strong>Offering</strong> <strong>of</strong> Perpetual Convertible<br />
Capital Securities (“PCCS”)<br />
Size: Up to SGD 220M (the maximum number <strong>of</strong> PCCS that will be issued is 205,382,555)<br />
Maturity: Perpetual<br />
Distributions: Ordinary Distribution <strong>of</strong> 2.0% per annum for the first 5 years + Special Distribution (equivalent to cash<br />
divi<strong>de</strong>nds on un<strong>de</strong>rlying ordinary shares)<br />
Ordinary Distribution Step Down: Nil distributions after 5 years from the Issue Date<br />
Conversion Price: 15% conversion premium to VWAP <strong>of</strong> the Ordinary Shares over 5 consecutive trading days<br />
ending on and including the Price Fixing Date (2 business days before Pref <strong>Offering</strong> closes)<br />
Issuer Call: From 7 years after the Issue Date<br />
Status <strong>of</strong> PCCS: Unsecured and subordinated<br />
Preferential <strong>Offering</strong> Ratio: 1 PCCS for every 4 existing shares<br />
Major Sharehol<strong>de</strong>r Commitments Irrevocable Un<strong>de</strong>rtakings from Singapore Airlines and Temasek<br />
– Up to 84% <strong>of</strong> <strong>of</strong>fering<br />
EGM Friday, 22 March 2013<br />
Use <strong>of</strong> Proceeds (SGD M)<br />
Repayment <strong>of</strong> existing loans 80 to 100<br />
Funding / investment in new or existing airlines and/or ventures 70 to 90<br />
Funding for aircraft, spare engines & other aircraft parts, and assoc. pre-<strong>de</strong>livery payments 60 to 80<br />
Working capital and issuance expense At least 27<br />
Total 297<br />
Lead Manager and Lead Arranger Morgan Stanley Asia (Singapore) Pte.<br />
Joint Un<strong>de</strong>rwriters <strong>of</strong> the Rights<br />
Issue<br />
Morgan Stanley Asia (Singapore) Pte., DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited<br />
2
<strong>Offering</strong> Structure<br />
Strengthens our financial<br />
position via raising equity<br />
Raises capital at a lower cost <strong>of</strong><br />
capital<br />
Allows participation by all<br />
sharehol<strong>de</strong>rs in both the Rights<br />
Issue and Preferential <strong>Offering</strong><br />
Higher Average Issuance Prices<br />
Offer Price <strong>of</strong> Rights Issue vs. PCCS Conversion Shares<br />
0.470<br />
Rights <strong>Offering</strong><br />
Issue Price<br />
0.775<br />
PCCS<br />
Conversion Price*<br />
* Computed based on 15% premium to PCCS reference price, which is assumed for illustrative purposes to be equal to TERP <strong>of</strong> S$0.674<br />
SGD<br />
0.658<br />
Blen<strong>de</strong>d<br />
Issue Price<br />
3
Irrevocable Un<strong>de</strong>rtakings from Our Major Sharehol<strong>de</strong>rs<br />
Singapore Airlines<br />
− Pro-rata un<strong>de</strong>rtaking <strong>of</strong> rights <strong>of</strong>fering and PCCS <strong>of</strong>fering<br />
− Vote in favour <strong>of</strong> the resolution at EGM<br />
− Un<strong>de</strong>rtaking to take up excess <strong>of</strong> PCCS <strong>of</strong>fering <strong>of</strong> up to 138,254,087 PCCS<br />
and any additional excess right shares up to a total ownership <strong>of</strong> 49.9%<br />
(assuming the PCCS are fully converted)<br />
Temasek<br />
− Pro-rata <strong>of</strong> un<strong>de</strong>rtaking <strong>of</strong> rights <strong>of</strong>fering<br />
− Vote in favor <strong>of</strong> the resolution at EGM<br />
Remain<strong>de</strong>r <strong>of</strong> rights <strong>of</strong>fering is un<strong>de</strong>rwritten by Joint Un<strong>de</strong>rwriters<br />
No commission paid for irrevocable un<strong>de</strong>rtaking<br />
SIC approval for Whitewash Waiver has been obtained, conditional on<br />
sharehol<strong>de</strong>r approval at an EGM<br />
4
1<br />
2<br />
3<br />
<strong>Summary</strong> <strong>of</strong> <strong>Proposed</strong> <strong>Offering</strong><br />
Rationale and Use <strong>of</strong> Proceeds<br />
Appendix<br />
5
Use <strong>of</strong> Proceeds<br />
Objectives<br />
Strengthen financial<br />
position by raising<br />
equity<br />
Fund the Group’s<br />
growing operations<br />
Initiatives<br />
Repayment <strong>of</strong> existing loans<br />
Funding / investment in new or<br />
existing airlines and/or ventures<br />
Funding for aircraft, spare<br />
engines & other aircraft parts,<br />
and assoc. pre-<strong>de</strong>livery payments<br />
Working capital and issue<br />
expenses<br />
SGD 80M to 100M<br />
SGD 70M to 90M<br />
SGD 60M to 80M<br />
A minimum <strong>of</strong> SGD 27M,<br />
and any remain<strong>de</strong>r from<br />
such Net Proceeds not<br />
being utilized for the above<br />
6
Funding for Tiger’s Expansion Plans<br />
Expand fleet with<br />
25 new aircraft to<br />
be <strong>de</strong>livered by<br />
September 2015<br />
Expand group<br />
network<br />
Grow Tiger’s<br />
franchise in Asia<br />
Indo-<br />
nesia<br />
Source: Company Website<br />
Singapore<br />
Philip-<br />
pines<br />
Australia<br />
7
Funding for Tiger’s Expansion Plans (cont’d)<br />
Our Cub Strategy<br />
Ownership<br />
Current<br />
Fleet<br />
Strategy<br />
Singapore<br />
100%<br />
A320<br />
Extend market<br />
lea<strong>de</strong>rship position<br />
Grow network <strong>de</strong>nsity<br />
Grow tigerconnect<br />
product through Changi<br />
Hub for Tiger Singapore<br />
and in collaboration with<br />
other cubs and Scoot<br />
Broa<strong>de</strong>n range <strong>of</strong><br />
ancillary product<br />
<strong>of</strong>ferings<br />
Australia* Philippines Indonesia<br />
40% <strong>of</strong> Tiger Airways<br />
Australia<br />
A320<br />
Collaborate with<br />
Virgin Australia<br />
to build a<br />
stronger Tiger<br />
Australia,<br />
capitalizing on<br />
synergies<br />
Increase fleet<br />
strength to 35<br />
within 5 years<br />
Expand network<br />
and coverage<br />
40% <strong>of</strong> SEAir<br />
* Assuming the Australian Competition and Consumer Commission (the “ACCC”) grants its approval for the Company’s proposed joint venture with<br />
Virgin Australia Holdings Limited in respect <strong>of</strong> Tiger Airways Australia Pty Ltd<br />
A320<br />
A319<br />
33% <strong>of</strong> Mandala<br />
Airlines<br />
A320<br />
Leverage Tiger brand to grow in their<br />
respective markets<br />
Capitalize on increasing propensity to<br />
travel in these fast-growing markets<br />
Grow network with new aircraft<br />
<strong>de</strong>liveries<br />
8
Strengthen Balance Sheet by Reducing Leverage<br />
1.80x<br />
Net Gearing<br />
0.19x<br />
31-Dec-12 (Actual) 31-Dec-12 (Pro Forma)<br />
(1)<br />
Liquidity<br />
(Cash & Cash Equivalent / Preceding 12-Months Revenue)<br />
As <strong>of</strong> December 2012<br />
44.8%<br />
Tiger<br />
Airways<br />
(1)<br />
Pro Forma<br />
43.5%<br />
38.3%<br />
AirAsia Thai<br />
AirAsia<br />
28.3%<br />
Cebu<br />
(2)<br />
Pacific<br />
Source: Company Q3 2013 Results Announcement Source: Company Q3 2013 Results Announcement, Peer Public Filings<br />
19.2%<br />
7.1%<br />
(3)<br />
Qantas Tiger<br />
Airways<br />
Actual<br />
(1) After taking into account the net proceeds from the transaction and assuming all other factors unchanged<br />
(2) As <strong>of</strong> September 2012; Cebu Pacific has not yet announced Q4 2012 results<br />
(3) 100% sharehol<strong>de</strong>r <strong>of</strong> Jetstar 9
1<br />
2<br />
3<br />
<strong>Summary</strong> <strong>of</strong> <strong>Proposed</strong> <strong>Offering</strong><br />
Rationale and Use <strong>of</strong> Proceeds<br />
Appendix<br />
10
Plan for Continued Growth<br />
Strong Available-Seat-Kilometres Growth Strong Revenue Growth<br />
M<br />
5,047<br />
6,459<br />
7,847<br />
9,583<br />
10,447<br />
12,096<br />
2008 2009 2010 2011 2012 LTM<br />
Dec-12<br />
Attractive Growth<br />
Since Inception<br />
SGD M<br />
304<br />
378<br />
486<br />
622 618<br />
Australia<br />
Grounding<br />
787<br />
2008 2009 2010 2011 2012 LTM<br />
Dec-12<br />
Source: Annual Report (2008-2012), Company Q3 2013 Results Announcement Source: Annual Report (2008-2012), Company Q3 2013 Results Announcement<br />
11
thank you<br />
Disclaimer<br />
These materials are not a prospectus, <strong>of</strong>fering information statements or other <strong>of</strong>fering documents. These materials have been<br />
prepared by Tiger Airways Holdings Limited (the “Company”) and the information herein has not been in<strong>de</strong>pen<strong>de</strong>ntly verified. No<br />
representation or warranty, expressed or implied, is ma<strong>de</strong> and no reliance should be placed on the accuracy, fairness or<br />
completeness <strong>of</strong> the information herein. None <strong>of</strong> the Company nor any <strong>of</strong> its affiliates or representatives accepts any liability<br />
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statements are based on a number <strong>of</strong> assumptions and factors beyond the Company’s control and are subject to significant<br />
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obligations to update such statements for subsequent circumstances.<br />
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