MINT to Increase Liquidity by Issuing a “Perp Bond” through HSBC-UBS with 6% Coupon Rate

Minor International Public Company Limited (MINT) is expecting to issue a perpetual bond in United States Dollars on Monday, June 22, 2020, through HSBC and UBS, according to the source close to the matter.

The source stated that the bond, with a yield around 6%, will be wrapped by Standby Letter of Credit (SBLC) of Bangkok Bank Public Company Limited (BBL) for three years.

 

As a company as hotel operators as its core business, MINT reported a net loss of 1,773 million baht in the first quarter of 2020, compared to a net profit of 583 million baht in 1Q19. The decline was mainly due to the coronavirus outbreak that shut down MINT’s overseas businesses, which is its main income.

In the first quarter of 2020 , the company reported 1Q20 core revenue of 22,421 million baht, decreased by 22% YoY. This was attributable to adverse impact from COVID-19 outbreak on all three business units, most notably the challenging environment of Minor Hotels globally and Minor Food in China.

The EBITDA declined at a faster rate than revenue as the decline in revenue from the impact of the pandemic was severe and sudden while costs did not fall as fast, resulting in compounding effect from negative flow-through.

Particularly, the majority of EBITDA net loss was from NH Hotel Group which structurally has high fixed leases, and therefore lower profitability than MINT in general while Minor Hotels still recorded positive EBITDA. Including the impact of TFRS 16, with forgone rental expenses, core EBITDA was 2,982million baht in 1Q20, falling by 30% YoY from 1Q19 level.

 

In the first quarter of 2020, NH Hotel Group SA, MINT’s subsidiary, reported its 1Q20 earnings with a total net loss of 57 million euro mainly due to the plummet in March after temporarily closing business to contain the coronavirus outbreak.

 

After the announcement of its loss in the first quarter, MINT announced that the Board of Directors Meeting on May 18, 2020, approved to propose to the Shareholders’ Annual General Meeting to consider and approve the increase of the registered capital of MINT by 1,037,955,941 Baht from 4,849,860,006 Baht to 5,887,815,947 Baht by issuing up to 1,037,955,941 new ordinary shares each at the par value of 1 Baht.