The last time Tiger Airways did a rights issue in 2011, they raised around $158 million.
Less than two years later, Tiger Airways are in the process of another rights cum and perpetual securities issue to raise almost $300 million. Ouch.
Under the terms of the rights issue, every 5 existing shares will be entitled to 1 rights share at a price of $0.47.
For the Perpetual Convertible Capital Securities (PCCS), every 4 existing share will be entitled to 1 PCCS at a price of $1.07.
The PCCS is something like a convertible bond. It gives an ordinary distribution of 2.0% per annum for the first 5 years and a special distribution (equivalent to cash dividends on underlying ordinary shares). The payment of ordinary distribution can be deferred at sole discretion of company and there will be no ordinary distribution after 5 years.
As the PCCS is perpetual in nature, therefore there is no maturity date. However, Tiger has the right to redeem them anytime from seven years onwards.
The PCCS can be converted into Tiger Aiway shares at any time from the 41st day after the issue date. The conversion price will be set at a premium of 15% to the Reference Price, being the 5-day Volume Weighted Average Price from 4-10 April 2013, to the nearest 0.5 cents, subject to a minimum of 0.65 and maximum of 0.90.
Last date and time for application and payment for Convertible Securities : Friday, 12 April 2013 (5:00 p.m. by form and 9:30 p.m. for Electronic Applications through ATMs of Participating Banks)
Last date and time for acceptance of and payment for Rights and Excess Rights : Thursday, 18 April 2013 (5:00 p.m. by form and 9:30 p.m. for Electronic Applications through ATMs of Participating Banks)