Raffles Education Unveils Related-Party Bond Refinancing and Special Dividend Plan

Raffles Education ( (SG:NR7) ) has provided an announcement.

Raffles Education plans a refinancing exercise involving the purchase and cancellation of S$35 million in existing listed convertible bonds held by its chairman and controlling shareholder, Chew Hua Seng, and his spouse, Doris Chung. In exchange, the company will issue an equivalent principal amount of new unlisted, non-convertible unsecured bonds with 5.5% coupon and 538.9 million unlisted detachable warrants, each exercisable into a new share at S$0.065, subject to shareholder approval.

The refinancing is structured to avoid a significant cash outflow that would have arisen from redeeming the existing convertible bonds, preserving liquidity while extending the company’s debt maturity profile by five years. Contingent on shareholders approving the deal at an extraordinary general meeting, the board intends to declare a special interim dividend of S$0.003 per share, signalling management’s confidence in the group’s cash position and offering an immediate return to shareholders despite the continued reliance on related-party funding.

The most recent analyst rating on (SG:NR7) stock is a Buy with a S$0.34 price target. To see the full list of analyst forecasts on Raffles Education stock, see the SG:NR7 Stock Forecast page.

More about Raffles Education

Raffles Education Limited is a Singapore-based private education group operating through subsidiaries across Asia. The company focuses on delivering tertiary and professional education, positioning itself within the regional education services market with an emphasis on design, business and related disciplines.

YTD Price Performance: 9.63%

Average Trading Volume: 10,101,210

Technical Sentiment Signal: Buy

Current Market Cap: S$263.5M

Learn more about NR7 stock on TipRanks’ Stock Analysis page.