Today's Information |
Provided by: FDC International Hotels Corporation | |||||
SEQ_NO | 3 | Date of announcement | 2022/03/03 | Time of announcement | 15:51:42 |
Subject | Announces Board resolution to change funds usage plan for 2021 capital raising | ||||
Date of events | 2022/03/03 | To which item it meets | paragraph 16 | ||
Statement | 1.Date of the board of directors resolution for the change:2022/03/03 2.Effective registration date of the original plan:2021/10/19 3.Resolution date of additional issuance of the original plan:NA 4.Reason for the change: 2021 capital raising was originally scheduled to repay the NT$510,000,000 principal of the first unsecured conversion of corporate bonds. The company will not have the need to repay the principal of the converted corporate bonds in the short term, and it is planned to be changed to enrich the use of working capital. 5.Content of each and every successive previously changed plan for raising of funds before and after change: (1)Before the change Repay the principal of NT$800,000,000 from the first domestic unsecured conversion of corporate bonds. (2)After the change Enriched working capital of NT$510,000,000. 6.Projected timetable for execution: NT$100,000,000 in the second quarter of 2022 NT$200,000,000 in the third quarter of 2022 NT$210,000,000 in the fourth quarter of 2022 7.Projected completion date: The fourth quarter of 2022 8.Projected possible benefits: It is planned to raise NT$510,000,000, which will be used to enrich working capital and meet the needs of daily working capital. It is expected to reduce the interest burden of borrowing from banks due to operating turnover needs. The company's current average borrowing rate is about calculated at 1.50%, it is estimated that the annual interest expense savings will be NT$7,650,000. 9.Difference from original projected benefits: Average borrowing rate and estimated annual savings in interest expense increased by 0.3% and NT$1,530,000 respectively. 10.Effect of the current change on shareholder equity: The company issued the first domestic unsecured convertible corporate bonds on December 24, 2018. In accordance with the provisions of the right of sale in the Conversion Regulations, The bondholders may request the company to redeem the convertible bonds held by them in cash at the bond face value on the date of the three-year expiry of the issue of the convertible bonds (December 24, 2021).Since the bondholders did not apply to sell the bonds back to the company before the deadline for the application period for selling back, the company has no need to repay the principal of the corporate bonds. Therefore, it is planned to adjust all the capital utilization plan to enrich the working capital of NT$510,000,000, and use it instead to invest the capital required for the company's operation, which should be of positive benefit to the company's current and future overall business development. This will further enhance the rights and interests of the company as a whole. 11.Abstract of the original lead underwriter's appraisal opinion: The company planned to repay the NT$510,000,000 principal of the first unsecured conversion of corporate bonds, but the bondholders who did't convert the corporate bonds applied to sell them back to the company. Therefore, the company will not have the need to repay the principal of the converted corporate bonds in the short term. In addition, the company considers that the impact of the Covid-19 epidemic on the tourism and catering industry is still profound. Therefore, after careful evaluation, the principal scheduled to be repaid for the first domestic unsecured conversion of corporate bonds NT$510,000,000 to be sold back was changed to the use of sufficient working capital. 12.Any other matters that need to be specified: NA |
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FDC International Hotels Corporation published this content on 03 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 March 2022 07:59:02 UTC.