By Evan Weinberger
New York, Feb. 19 - Country Garden Holdings Co. Ltd. priced 3.595 billion yuan in 2.5% renimnibi-denominated, dollar-settled convertible bonds due Feb. 22, 2013 Friday in Hong Kong. The convertibles priced to yield 6.2% and carry a 32.7% initial conversion premium over Country Garden's closing stock price on the Hong Kong Stock Exchange Thursday.
Merrill Lynch is the bookrunner of the Regulation S transaction.
There is a 719 million yuan over-allotment option.
The convertibles were offered at par.
The settlement date is expected to be Feb. 22.
The conversion price is HK$9.05.
The bonds will be redeemed at 121.306% upon maturity.
The convertibles are callable beginning Feb. 22, 2011 subject to a 130% hurdle. Called convertibles will be redeemed in renminbi. There is a put option the same day, and convertible holders will receive 111.997% of par value in renminbi.
There are change of control and delisting protections.
Country Garden entered into a $250 million equity swap with Merrill Lynch. Half of the proceeds of the convertible offering will go toward financing the equity swap. The rest will go toward repaying existing debt and to fund existing property development and general corporate purposes.
Country Garden is a Cayman Islands-based real estate development company that operates in mainland China. Its stock is listed on the HKSE.
Issuer: Country Garden Holdings Co. Ltd.
Issue: Dollar-settled convertible bonds
Amount: 3.595 billion yuan
Greenshoe: 719 million yuan
Maturity: Feb. 22, 2013
Coupon: 2.5%
Price: Par
| Redemption price: | 121.306
|
| Yield: | 6.2%
|
| Conversion premium: | 32.7%
|
| Conversion price: | HK$9.05
|
| Conversion payment: | 121.306%
|
| Call: | Beginning Feb. 22, 2011 subject to 130% hurdle. To be paid in renminbi
|
| Put: | Feb. 22, 2013. To be paid in renminbi at 111.97% of par value
|
| Bookrunner: | Merrill Lynch
|
| Distribution: | Regulation S
|
| Pricing date: | Feb. 15
|
| Settlement date: | Feb. 22
|
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