By Abigail W. Adams
Portland, Me., Jan. 8 – China Hongqiao Group Ltd. priced an upsized $300 million of five-year convertible bonds on Thursday at par with a coupon of 5.25% and an initial conversion premium of 15%, according to a company announcement.
Pricing came at the cheap end of talk for a coupon of 4.75% to 5.25% and an initial conversion premium of 15% to 20%, according to a market source.
UBS AG Hong Kong Branch and China International Capital Corp. are active bookrunners for the Regulation S offering.
CNCB Capital, CACIB, CMBI and ING are passive bookrunners.
The initial size of the offering was $200 million with a $50 million same-day greenshoe.
The notes are non-callable. They are putable on Jan. 25, 2023 or upon a fundamental change.
There is takeover and dividend protection.
The bonds will be converted according to a fixed exchange rate of US$1.00 to HK$7.7530.
Net proceeds are expected to be $294 million.
Proceeds will be used for refinancing debt, capital expenditures and general corporate purposes.
China Hongqiao is a Huixian, China-based aluminum producer.
| Issuer: | China Hongqiao Group Ltd.
|
| Securities: | Convertible bonds
|
| Amount: | $300 million
|
| Maturity: | Jan. 25, 2026
|
| Bookrunners: | UBS AG Hong Kong Branch, China International Capital Corp. (active), CNCB Capital, CACIB, CMBI and ING
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 15%
|
| Conversion price: | HK$8.91
|
| Call options: | None
|
| Put options: | On Jan. 25, 2023
|
| Pricing date: | Jan. 7
|
| Settlement date: | Jan. 25
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 4.75% to 5.25% and initial conversion premium of 15% to 20%
|
| Stock symbol: | HK: 1378
|
| Stock price: | HK$7.75
|
| Market capitalization: | HK$61.44 billion
|
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