Astrea IV Transaction

English Subtitles
 | 
中文字幕
 

Astrea IV Pte. Ltd. is the Issuer of the Astrea IV Transaction and is issuing three classes of PE Bonds, backed by cash flows from a portfolio of PE Funds (“Transaction Portfolio”).

Overview of The Transaction

  • Total issue size of US$501m against a Transaction Portfolio NAV of US$1.1bn
  • Significant over-collateralisation – the issue size is less than 46% of the Transaction Portfolio NAV
  • Diversified & quality Transaction Portfolio of 36 PE Funds
  • Mature, cash generative Transaction Portfolio
Capital Structure
Class Principal Amount Interest Rate
(per annum)
Interest Rate Step-Up
(per annum)
Scheduled Call Date Maturity Date Expected Ratings
(Fitch/S&P)1
Class A-1 Bonds S$242m
US$181m
4.35 % 1.0% 14 June 2023 14 June 2028 Asf / A (sf)
Class A-2 Bonds US$210m 5.50 % 1.0% 14 June 2023 14 June 2028 Asf / Not rated
Class B Bonds US$110m 6.75 % N/A Not Applicable 14 June 2028 BBBsf / Not rated
1. Fitch and S&P have not provided their consent, for the purposes of Section 249 of the Securities and Futures Act, Chapter 289 of Singapore (“SFA”), to the inclusion of the information cited and attributed to them in the Prospectus, and are thereby not liable for such information under Sections 253 and 254 of the SFA (as described in the section “Credit Ratings“ of the Prospectus).

Click the links to access the Fitch Ratings Report as well as S&P's Final Rating Press Release and Pre-sale Report.

Class A-1 Bonds – The first retail PE bonds listed on SGX-ST Mainboard (Stock Code: RMRB)

  • 5 years non-call period (principal scheduled to be repaid at the end of five years)
  • Fixed interest of 4.35% p.a. every six months
  • 1.0% p.a. interest rate step-up if bond is not redeemed after 5 years
  • Bonus payment of up to 0.5% of principal at redemption if performance condition is met

Class A-2 Bonds

  • 5 years non-call period (principal scheduled to be repaid at the end of five years)
  • Fixed interest of 5.50% p.a. every six months
  • 1.0% p.a. interest rate step-up if bond is not redeemed after 5 years

Class B Bonds

  • Principal expected to be repaid after the redemption of Class A-2 bonds
  • Fixed interest of 6.75% p.a. every six months

The Transaction Structure

The following diagram illustrates the structure through which the three Classes of Bonds will be issued.

Simplified cash flow & priority of payments

Cash distributions from the PE Funds are received by the Issuer. The Issuer then pays out available cash through the Priority of Payments semi-annually.

Below is a simplified illustration of the cash flow and Priority of Payments.

Structural Safeguards

1. Reserves Accounts

Cash build up to repay principal of Class A-1 Bonds and Class A-2 Bonds on 14 June 2023

2. Sponsor Sharing

Enables a faster build up of reserves

3. Maximum Loan-to-Value (LTV) Ratio

Debt level limit at 50% - crossing this limit triggers lowering of Total Net Debt

4. Liquidity Facility

Allows Issuer to draw down from bank to pay senior payments and expenses, and interest payments of Bonds in the event of shortfall

5. Capital Call Facility

Allows Issuer to draw down from bank to pay capital calls in the event of shortfall

Astrea IV Transaction Portfolio

The quality Transaction Portfolio is diversified across 36 PE Funds, managed by 27 GPs and invested across 596 Investee Companies. The Transaction Portfolio has a weighted average fund life of 7 years, and is mature and cash generative.

Portfolio Summary as of 31 March 2018

Number of PE Funds 36 NAV $1,098.4
Number of GPs 27 Undrawn Capital Commitments $168.1
Number of Investee Companies (as of 31 December 2017) 596 Total Exposure $1,266.5
Weighted Average Vintage Year 2011 Capital Commitments $1,752.9
Range of Vintage Years 2003-2014    

Portfolio Composition

Portfolio Funds by Fund Strategy
Portfolio by fund Strategy

Portfolio Net Asset Value (NAV) by Fund Region
Portfolio by fund region

Investee Companies by Sector
Portfolio by investment sector

Portfolio NAV by Vintage Year
Portfolio NAV by fund vintage

Uniquely Transforming Private Equity into Bonds