New York, March 10 - China Water Affairs Group Ltd. priced HK$600 million of 2.5% convertible bonds due 2015 to yield 6% with a 20.12% initial conversion premium.
DBS Bank Ltd. was the manager.
The bonds convert at HK$4.00, with a reset downwards on April 15, 2011 if the company's stock is trading below the conversion price. There is a floor of HK$3.15 for the rest.
China Water Affairs can call the bonds starting April 15, 2013 subject to a 135% stock price hurdle. There is a put on April 15, 2013.
Proceeds will be used for capital expenditures, working capital and general corporate purposes.
China Water Affairs Group is a Hong Kong-based water supply and sewage treatment company that operates mainly in China.
| Issuer: | China Water Affairs Group Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | HK$600 million
|
| Maturity: | April 15, 2015
|
| Coupon: | 2.5%
|
| Redemption price: | 120.06%
|
| Yield: | 6%
|
| Conversion price: | HK$4.00; resets on April 15, 2011 if trading price of stock is lower, subject to floor of HK$3.15
|
| Conversion premium: | 20.12%
|
| Call: | April 15, 2013 onwards at yield to call of 6%, subject to 135% hurdle
|
| Put: | April 15, 2013 at 111.32
|
| Cash settlement: | At company's option
|
| Pricing date: | March 10
|
| Settlement: | April 15
|
| Underwriter: | DBS Bank Ltd.
|
| Stock price: | HK$3.33 at close on March 10
|
© 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.
