Paramount issuing RM500m perpetual securities

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KUALA LUMPUR (Aug 2): Paramount Corp Bhd is establishing an unrated perpetual securities issuance programme of up to RM500 million in nominal value.

Proceeds raised from the programme will be used to refinance existing debt obligations, finance investments and for working capital purposes, Paramount told Bursa Malaysia.

The group said it has made the lodgment to Securities Commission Malaysia today, and the perpetual securities may be issued at any time within the next 60 business days upon completion of the transaction documents and fulfillment of necessary conditions.

Paramount said the programme will not have any effect on its issued share capital, net assets, or substantial shareholders' shareholding, but is expected to have a positive impact on the gearing of the group.

"The effects of the issuance of the perpetual securities programme on the consolidated earnings and consolidated earnings per share of Paramount are not expected to be material for the financial year ending Dec 31, 2019," it said.

OCBC Bank (Malaysia) Bhd is the the principal adviser, lead arranger, lead manager and facility agent for the programme.

Shares in Paramount closed four sen or 2.68% lower today at RM1.45, for a market capitalisation of RM879.69 million.