Far East Horizon trims conversion prices of 2025, 2026 convertibles

By Mary-Katherine Stinson

Lexington, Ky., Jan. 22 – Far East Horizon Ltd. adjusted the conversion prices for the $300 million 2.5% guaranteed convertible bonds due 2025 and the $250 million zero-coupon guaranteed convertible bonds due 2026 both issued by Universe Trek Ltd. and guaranteed by the company, according to an announcement.

At the extraordinary general meeting on Dec. 22, shareholders approved a special dividend of no more than 159,819,846 shares in Horizon Construction Development Ltd.

Because of the dividend, the conversion price on the bonds due 2025 is being adjusted downwards to HK$6.48 per share from HK$6.59 per share and the price on the 2026 bonds is being lowered to HK$8.35 per share from HK$8.50 per share.

The adjustments will become effective on Jan. 22.

As of Jan. 22, the aggregate principal amounts under the 2025 bonds and the 2026 convertible bonds that remain outstanding are $290 million and $250 million, respectively.

The company stated it is expected that the maximum number of issuable shares upon full conversion of the outstanding 2025 convertibles will be 346,849,845, representing an increase of 5,789,603 shares from the original 341,060,242 and the maximum number of issuable shares upon full conversion of the outstanding 2026 convertibles will be 232,377,245, representing an increase of 4,100,775 shares from the original 228,276,470.

Other terms of the convertibles are unchanged, the company noted.

The financial services provider is based in Hong Kong.

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