China Medical to price $150 million five-year convertibles to yield 3.75%-4.25%, up 20%-25%

By Rebecca Melvin

New York, Aug. 11 - China Medical Technologies Inc. plans to price $150 million of five-year convertible senior notes after the market close Tuesday talked to yield 3.75% to 4.25% and with an initial conversion premium of 20% to 25%, according to a syndicate source.

Concurrently with the notes offering, American Depositary Shares of the company will be priced as part of a share lending agreement covering 100% of the underlying shares.

Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. are underwriters of both offerings, which are being made under a shelf registration filed Monday.

The notes are non-callable for life and have dividend and takeover protection.

Proceeds are for general corporate purposes and for the acquisition of businesses, products and technologies that the company believes will complement its existing business.

The ADS issuance and repurchase agreements are being made with affiliates of the underwriters, which will purchase the ADS for $1 per ADS, which is equal to the par value of the underlying ordinary shares.

Beijing-based China Medical is a medical device maker.

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