Country Garden greenshoe exercised, lifts 2.5% convertibles to RMB 4.13 billion

By Susanna Moon

Chicago, March 5 - Country Garden Holdings Co. Ltd. said the RMB 719 million over-allotment option on its 2.5% convertibles was fully exercised, boosting the issue to RMB 4.134 billion.

On Feb. 15, the issuer priced 3.595 billion yuan of the 2.5% renminbi-denominated, dollar-settled convertible bonds due Feb. 22, 2013 in Hong Kong.

Merrill Lynch was the bookrunner of the Regulation S deal.

As reported, the convertibles priced to yield 6.2% and carried a 32.7% initial conversion premium over Country Garden's closing stock price on the Hong Kong Stock Exchange on Feb. 14. 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 will go toward financing the equity swap. The rest will go toward repaying existing debt and to fund existing property development and for general corporate purposes.

Country Garden is a Shunde, China-based real estate developer.

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