Interplex Holdings (formerly: Amtek Engineering)

[wahkao]

i am trying to learn whats the big deal with Trust deeds? why this news caused the price to fly up 6% today?

does it indirectly lower their cost of borrowing?

Download document here:
http://infopub.sgx.com/FileOpen/Amendmen...eID=287749

AMENDMENTS TO THE TRUST DEED DATED 10 MAY 2013
Amtek Engineering Ltd (the "Company") had on 10 May 2013 established a Medium Term Note Programme (the "Programme") pursuant to which the Company may issue notes (the "Notes") from time to time. The Programme was arranged by DBS Bank Ltd. and Standard Chartered Bank. As at the date of this announcement, no Notes are outstanding.
The Board of Directors of the Company wishes to announce that the Company has entered into a Supplemental Trust Deed dated 10 March 2014 (the "Supplemental Trust Deed") with DBS Trustee Limited, as trustee, which is supplemental to the Trust Deed dated 10 May 2013 (the "Trust Deed") made between the same parties. The Trust Deed was amended and supplemented to, among other things:
(1) delete Clause 8.1 and Condition 3(a) of the Notes in relation to the negative pledge provisions in their entirety and to substitute a new Clause 8.1 and Condition 3(a) of the Notes with updated provisions allowing the Company to create security over any assets created in connection with credit facilities extended by banks and other financial institutions to the Group provided that after creating such security the Consolidated Secured Debt (as defined in the Supplemental Trust Deed) will not exceed 60 per cent. of the Consolidated Total Assets (as defined in the Supplemental Trust Deed);
(2) delete Clause 8.2 and Condition 3(b) of the Notes in relation to the financial covenants provisions in their entirety and to substitute a new Clause 8.2 and Condition 3(b) of the Notes with an additional financial covenant for the Company to maintain a ratio of Consolidated Secured Debt to Consolidated Total Assets of not more than 0.6:1 at all times;
(3) delete Condition 4(II)(b)(ii) of the Notes in its entirety and to substitute a new Condition 4(II)(b)(ii) of the Notes with the updated provisions for the calculation of the rate of interest in respect of SIBOR Notes and Swap Rate Notes (both as defined in the Trust Deed); and
(4) delete the references to "60 Alexandra Terrace, The Comtech #05-27, Singapore 118502" as the address of each of the Issuing and Paying Agent and the Agent Bank and to substitute them with the new address of "10 Toh Guan Road, #04¬11 (Level 4B) DBS Asia Gateway, Singapore 608838".
The above amendments take effect on and from 10 March 2014 and shall henceforward in relation to the Notes issued after 10 March 2014 have effect as so amended. Except to the extent expressly amended by the provisions of the Supplemental Trust Deed, all other provisions of the Trust Deed (including the Conditions) will remain in full force and effect.
The Company has also issued a supplemental Information Memorandum dated 10 March 2014 (the "Supplemental Information Memorandum") to reflect, inter alia, the Acquisition (as defined in the Supplemental Information Memorandum) and the abovementioned amendments to the Trust Deed.

[CityFarmer]

Amtek issued debt to fund acquisition, including the recent one. Amendment on trust deed might be a result of negotiation with investors.

The cost of debt is 6.9% for first three years, and 8.9% for the next 2 years if not recalled. Should be a reasonable cost, IMO...

Any other view?

------
Singapore, 11 March 2014 – Amtek announced today that it has successfully priced an aggregate
principal amount of S$200 million 6.90% Notes due 2019 (“Notes”) under the S$500 million
Multicurrency Medium Term Note Programme established on 10 May 2013. The Notes will bear
interest at a fixed rate of 6.90% per annum for the first three years, and if not called, 8.90% per
annum for the last two years. The interest will be payable semi-annually in arrear.
The Notes which were more than five times oversubscribed saw strong demand from more than 60
accounts across private banking accounts and institutional investors. The Notes are expected to be
issued on or about 20 March 2014.
The net proceeds from the issue will be used for financing general corporate purposes of Amtek and
its subsidiaries (“Group”), including financing potential acquisitions, strategic expansions, general
working capital, capital expenditure and investments of the Group and to refinance existing
borrowings of the Group.

Ref: http://infopub.sgx.com/FileOpen/PressRel...eID=287997

[greengiraffe]

Hi CF,

I would further qualify that it is reasonable in view of the risks. Amtek has always been a cyclical business since the competitive landscape changed in the mid 2000s.

With former towkays like Lee Ah Bee calling it a day, the PE guys have a field day now. Personally, I think these professional managers just want to ensure that their pay checks arrived.

They will scout for the best add-ons for existing business. The cost of debt IMO based on recent issues is almost "junk" for Singapore corporates. As allocators of scarce capital, we have a choice for our investment candidates based on our risks preference and should not be affected by the companies' action for their survival.

Not Vested
GG

Amtek issued debt to fund acquisition, including the recent one. Amendment on trust deed might be a result of negotiation with investors.

The cost of debt is 6.9% for first three years, and 8.9% for the next 2 years if not recalled. Should be a reasonable cost, IMO...

Any other view?

------
Singapore, 11 March 2014 – Amtek announced today that it has successfully priced an aggregate
principal amount of S$200 million 6.90% Notes due 2019 (“Notes”) under the S$500 million
Multicurrency Medium Term Note Programme established on 10 May 2013. The Notes will bear
interest at a fixed rate of 6.90% per annum for the first three years, and if not called, 8.90% per
annum for the last two years. The interest will be payable semi-annually in arrear.
The Notes which were more than five times oversubscribed saw strong demand from more than 60
accounts across private banking accounts and institutional investors. The Notes are expected to be
issued on or about 20 March 2014.
The net proceeds from the issue will be used for financing general corporate purposes of Amtek and
its subsidiaries (“Group”), including financing potential acquisitions, strategic expansions, general
working capital, capital expenditure and investments of the Group and to refinance existing
borrowings of the Group.

Ref: http://infopub.sgx.com/FileOpen/PressRel...eID=287997

[lvpierre]

Amtek Engineering is issuing a 5 years unsecured notes, non callable for 3 years. Indicative low 7% yield with a one time step up margin of 2% if not called on the first call date. Received this offer but i am not taking up. Just fyi only.

[kayhian]

After a positive start in 1HFY14, end-market demand has weakened
somewhat, resulting in some of our OEM customers reducing their
product pull. In addition, those in the IT/enterprise server
sector have also postponed some new product launches.
Specifically, end-market demand for consumer electronics and
hard-disk drives products continues to remain weak.

On a more positive note, the Group gained a number of new
business wins, notably in the automotive industry. This was
demonstrated by the exceptionally higher tooling sales to
date. Whilst new business wins in the automotive industry takes
much longer to convert into revenue, automotive products have
longer product life cycles which will continue to contribute
towards the Group’s future revenue pipeline. However, achieving
full potential of these new business wins is still dependent on
healthy end-market demand.

The operating environment continues to remain challenging.
Since the beginning of 3QFY14, further increases in minimum wage
have been mandated in many of the regions in which the Group
operates. Despite these increases in minimum wages, the Group
continues to report flat general and administrative expenses and
staff cost, due to its on-going operations and automation
initiatives.

Against this challenging backdrop, the Group will continue to
address new business opportunities and remain focused on its
operations and automation initiatives.

[kayhian]

http://www.sharesinv.com/articles/2014/0...93-210814/

Daily Bulletin | 21 August 2014

Amtek Engineering’s wholly-owned subsidiary, Amtek International, has agreed to the sale of all 52.3 million shares of Fischer Tech it currently holds for approximately $8.4 million, which translates to $0.16 per share. After the sale, the group no longer has any shareholding interest in Fischer Tech. Net proceeds of the sale will be used for general working capital, capital expenditure and investments of the group.

[kayhian]

The combination of Amtek and Interplex businesses will create a truly global precision engineering business that offers some of the most comprehensive and integrated precision engineering solutions in the industry. This represents exciting opportunities for the Group. Not only did it help expand the product and service offerings, through Interplex, the Group has also
expanded its manufacturing footprint to include the United States (“US”), Mexico and India amongst others.

The global economic outlook, as a whole, remains challenging. While the US and Europe continues to show signs of stabilising, China is facing a slowdown in consumer demand.

Amidst all these challenges the Group will be focused on addressing new business opportunities and integration of the enlarged Group. Nevertheless, notwithstanding the foregoing, the Group remains committed to continuing with its operations and automation initiatives.

[valuebuddies]

Result is out:

http://infopub.sgx.com/FileOpen/Amtek%20...eID=334738

Fabulous! Revenue up by 60% and profit up by 74%. With US0.02 EPS for the quarter, annualised PE just about 6.

The Group’s revenue pie, following the acquisition of Interplex continues to evolve. The Automotive product sector which grew 222% in 2QFY15, is now the largest contributor to the Group’s revenue pie, contributing 24%. The Group continues to benefit from new programme launches in the sector, the inclusion of complex mechatronics connector
modules, sensor housing and press-fit modules as product offerings will help the Group penetrate the Automotive industry further as car components becomes increasingly electrically controlled. As there is little overlap of product offerings between Interplex and Amtek’s customers, this opens up new cross selling opportunities in the product sector.

However, these new cross selling opportunities are not limited to the Automotive product sector as the acquisition had created a truly global precision engineering business that offers some of the most comprehensive and integrated precision engineering solutions in the
industry with multiple industry penetration.

Interplex also brought along two new revenue sectors, namely Industrial Electronics (supply of connectors to leading connectors companies) and Telecommunications product sectors (supply of reel-to-reel metal components to leading mobile communications companies. This represents new opportunities for the Group.

In addition, Interplex serves other “sticky” product sectors such as Aerospace and the Medical and Life Science product sectors which opens up new potential markets for further development.

Demand for IT products in 1HFY15 was mixed. While demand for Networking and Enterprise Server Enclosure product sector, excluding discontinued business, and the Mass Storage product sector showed some signs of growth, demand for Imaging/Printing slowed down.

The strengthening of the USD, in particular, against that of the Euro had a negative impact on the revenue growth of the Group. As the Group’s European subsidiaries’ functional currency is the Euro, this had a dilutive impact on growth when the Group’s European subsidiaries’ results are translated into USD for reporting purposes.

The Group continued to record strong tooling sales in 2QFY15. While we believe this builds the foundation for future revenue generation, the full revenue generation potential of these new tooling sales will, nevertheless, be dependent on healthy end-market demand.

[greentea]

After last Friday's news that CVC Capital Partners and Standard Chartered Private Equity are looking to sell their majority stake...

Amtek shares jump 8.2% after stake sale report: http://btd.sg/1K6pbKf

[BlueKelah]

Hehe PCI limited is moving into their old place at 35 pioneer road...

sent from my Galaxy Tab S