Aban Singapore sells pre-IPO CB to four investors

The $150 million convertible is part of a funding package arranged by Merrill Lynch that will enable the oil rig contractor to buy out a Norwegian associate.

Pre-IPO convertible bonds are increasingly becoming the instrument of choice when investment banks arrange financing for unlisted companies that have plans to go public at some stage.

For the issuers, a CB provides cash without them having to relinquish much of their control or influence over the company - as they typically would have to if they had sold to private equity investors. Meanwhile, investors will get a guaranteed minimum rate of return on the bonds and at the same...

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