By Angela McDaniels
Tacoma, Wash., Nov. 23 – China Aluminum International Engineering Corp. Ltd. subsidiary Chalieco Hong Kong Corp. Ltd. priced $350 million of senior guaranteed perpetual capital securities (BB), according to a company news release.
The initial distribution rate is 5.7%. Beginning Jan. 15, 2020, the rate will be the Treasury rate plus 829.2 basis points, and it will reset every three years.
The joint lead managers are Morgan Stanley & Co. International plc, CLSA Ltd., Bank of China Ltd. and Natixis.
Beginning Jan. 15, 2020, the notes will be callable semiannually at par plus accrued distributions plus any additional distribution amount.
Proceeds will be used to redeem the issuer’s $300 million 6 7/8% senior guaranteed perpetual capital securities issued in February 2014 and as working capital for overseas operations.
Huarong International Financial Holdings Ltd. was allocated $80 million of the new securities.
The issuer will apply to list the securities on the Stock Exchange of Hong Kong Ltd.
China Aluminum International Engineering is a Beijing-based technology, engineering service and equipment provider in the nonferrous metals industry.
| Issuer: | Chalieco Hong Kong Corp. Ltd.
|
| Guarantor: | China Aluminum International Engineering Corp. Ltd.
|
| Issue: | Senior guaranteed capital securities
|
| Amount: | $350 million
|
| Maturity: | Perpetual
|
| Lead managers: | Morgan Stanley & Co. International plc, CLSA Ltd., Bank of China Ltd. and Natixis
|
| Coupon: | 5.7%; will reset to Treasuries plus 829.2 bps Jan. 15, 2020 and every three years thereafter
|
| Price: | Par
|
| Call option: | Beginning Jan. 15, 2020, semiannually at par plus accrued distributions plus any additional distribution amount
|
| Pricing date: | Nov. 23
|
| Settlement date: | Dec. 1
|
| Rating: | S&P: BB
|
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