Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Pacific International Lines (Private) — Debt Investor Presentation (January 2021)
21 slides from Singapore Exchange's debt investor presentation, Jan 15, 2021
Slide 1: Pacific International Lines (Private) Limited – 2nd Informal Meeting for Noteholders
Pacific International Lines (Private) Limited 2nd Informal Meeting for Noteholders 15 January 2021
Slide 2: Disclaimer
STRICTLY PRIVATE AND CONFIDENTIAL Disclaimer The information in this document is in summary form and should not be relied upon as a complete and accurate representation of any matters that a potential investor or creditor should consider in evaluating Pacific International Lines (Private) Limited (t
Slide 3: Disclaimer (Cont'd)
STRICTLY PRIVATE AND CONFIDENTIAL Disclaimer (Cont’d) Given the risks and uncertainties that may cause the actual future results, performance or achievements of the Company or the Group to be materially different from the results, performance or achievements expected, expressed or implied by the fin
Slide 4: Important Notes
STRICTLY PRIVATE AND CONFIDENTIAL Important Notes This presentation is prepared for the sole purpose of providing the holders of the S$60,000,000 8.50 per cent. Notes due 2020 (ISIN: SG7JE9000007) comprised in Series 003 (the “Notes”) issued by the Company an overview of the financial position of
Slide 5: Meeting Protocol
STRICTLY PRIVATE AND CONFIDENTIAL Meeting Protocol Without prejudice Informal meeting No recording and photo-taking in any forms 4
Slide 6: Introduction
STRICTLY PRIVATE AND CONFIDENTIAL Introduction PIL is grateful for the continued support of its stakeholders, including Noteholders, during these challenging times, while it works on normalising its financial situation On 11 November 2020, PIL presented the terms of the final restructuring packa
Slide 7: Why is a debt restructuring necessary?
STRICTLY PRIVATE AND CONFIDENTIAL Why is a debt restructuring necessary? The restructuring is PIL’s last resort and is necessary to prevent the Company from going into liquidation This is PIL’s last resort - Decision undertaken only after significant efforts by the Company to streamline the busine
Slide 8: Why must the debt restructuring be completed as soon as possible?
STRICTLY PRIVATE AND CONFIDENTIAL Why must the debt restructuring be completed as soon as possible? There is strong urgency for this comprehensive restructuring to be completed as soon as possible Any delays to both the completion of the restructuring and the capital injection will result in irrep
Slide 9: What is the final restructuring package for PIL?
STRICTLY PRIVATE AND CONFIDENTIAL What is the final restructuring package for PIL? The final restructuring package comprises a capital injection from Heliconia, a wholly-owned subsidiary of Temasek, in conjunction with a holistic debt structuring to be implemented via the Scheme The final restruct
Slide 10: What will Noteholders receive under the Scheme?
Full terms of the Perps are provided in the Explanatory Statement STRICTLY PRIVATE AND CONFIDENTIAL What will Noteholders receive under the Scheme? Noteholders’ claims will be converted into Perpetual Securities (“Perps”) Key Terms of the Perps Perpetual Perpetual security, i.e. no fixed maturity
Slide 11: What are the differences between the Option A and Option B Perps?
Full terms of the Perps are provided in the Explanatory Statement STRICTLY PRIVATE AND CONFIDENTIAL What are the differences between the Option A and Option B Perps? Each Noteholder would be able to elect to receive one of the two options below, or a combination of the two options1 Two Perps Options
Slide 12: What are the potential cash distributions for Perps holders?
Full terms of the Perps are provided in the Explanatory Statement STRICTLY PRIVATE AND CONFIDENTIAL What are the potential cash distributions for Perps holders? Illustrative Example: Noteholder holding S$250,000 of Notes today Amount of Notes held by Noteholder (S$) 250,000 Principal amount Accrued
Slide 13: Can the Company survive post-restructuring?
STRICTLY PRIVATE AND CONFIDENTIAL Can the Company survive post-restructuring? Debt restructuring terms are designed to provide PIL's capital structure with flexibility for long-term sustainability Secured lenders under the Scheme do not have a fixed debt repayment schedule - Any debt repayments ma
Slide 14: How are Scheme Creditors treated under the Scheme?
STRICTLY PRIVATE AND CONFIDENTIAL How are Scheme Creditors treated under the Scheme? The Investor's proposal seeks to treat all creditors equitably – terms take into account relative priority of creditors’ security positions and the value of their collateral (if any) Illustrative Liquidation Scheme
Slide 15: Why should Noteholders and other Scheme creditors vote in favour of the Scheme?
STRICTLY PRIVATE AND CONFIDENTIAL Why should Noteholders and other Scheme creditors vote in favour of the Scheme? If PIL does not get the required number of votes in support of the Scheme, this restructuring will fail and PIL believes liquidation is the alternative In a liquidation scenario, any v
Slide 16: Merits for Noteholders
STRICTLY PRIVATE AND CONFIDENTIAL Merits for Noteholders 1 Significantly higher recoveries compared to recoveries under a liquidation scenario 2 Perps are tradable OTC, providing a way for noteholders who wish to sell the Perps and crystallise its value 3 Ranks senior to the Investor’s equity-like i
Slide 17: Voting Instructions for Noteholders
STRICTLY PRIVATE AND CONFIDENTIAL Voting Instructions for Noteholders Refer to the Company’s email to Noteholders and Nominees on 23 December 2020 for more details Should I contact Should I submit my nominee? a proxy form? Should I attend the Scheme Meeting? You are an Yes, please instruct No, you d
Slide 18: Appointment of Counsel for Noteholders
STRICTLY PRIVATE AND CONFIDENTIAL Appointment of Counsel for Noteholders Over the course of PIL’s Noteholder engagement process, PIL has received questions from Noteholders, including some which are legal in nature While PIL would like to address these queries, we believe that Noteholders will b
Slide 19: Next Steps
STRICTLY PRIVATE AND CONFIDENTIAL Next Steps 1 Deadline for submission of proxy form to DHC Capital 29 January 2021, 2pm 2 Scheme Meeting for Unsecured Claims 1 February 2021, 2pm 3 Sanction Application 2 February 2021 4 Sanction Hearing February / March 2021 After the court orders the sanction of 5
Slide 20: Conclusion
STRICTLY PRIVATE AND CONFIDENTIAL Conclusion An unprecedented series of events have culminated in the difficult situation that PIL faces today A significant capital injection and capital structure recalibration is necessary for PIL to continue operating as a going concern - Capital injection wil
Slide 21: Q&A
STRICTLY PRIVATE AND CONFIDENTIAL Q&A For further enquiries, please contact the Company at bondholder.meeting2020@sgp.pilship.com 20
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