China’s Red Star Macalline plans RMB 3 billion 3.3%-4½%, 4%-5% bonds

By Marisa Wong

Morgantown, W.Va., July 8 – Red Star Macalline Group Corp. Ltd. is proposing to issue its second tranche of corporate bonds totaling RMB 1.5 billion with a RMB 1.5 billion over-allotment option.

The second-tranche bonds will consist of two types: five-year bonds bearing interest at 3.3% to 4½% and seven-year bonds with a coupon of 4% to 5%. The exact coupons will be determined through a book-building process.

The company will have the option to adjust the coupon and holders will have a put option at the end of three years for the five-year bonds and at the end of five years for the seven-year bonds.

Zhongshan Securities Co., Ltd. is the lead underwriter and bookrunner. China International Capital Corp. Ltd., China Merchants Securities Co., Ltd. and China Investment Securities Co., Ltd. are the other joint underwriters. China International Capital is also the bond trustee.

The company had previously proposed to issue up to RMB 10 billion of corporate bonds in China. The first tranche, totaling RMB 5 billion, was completed in November 2015.

The company intends to use proceeds from the second tranche to repay loans.

Based in Hong Kong, Red Star Macalline is principally engaged in operating and managing home improvement and furnishings shopping malls.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.