By Kenneth Lim
Boston, April 20 - Fong's Industries Co. Ltd. has priced HK$800 million of five-year zero-coupon convertible unsubordinated unsecured notes to yield 4.35% with an initial conversion premium of 35%.
The convertibles were offered at par and may be redeemed at maturity at 124.01% of the principal. The total deal amount includes HK$200 million of over-allotment options already exercised.
Deutsche Bank was the bookrunner.
The initial conversion price is HK$8.37, but it may be adjusted downward every year if the stock falls below the conversion price. There is a floor of 80% of the initial conversion price on the conversion price resets.
The convertibles are non-callable until Nov. 10, 2008, after which they may be called if the Fong's Industries stock exceeds 130% of the conversion price. Convertible holders also have a put option on Nov. 10, 2008, and in a change-of-control situation.
Fong's Industries will list the securities in Hong Kong.
Fong's Industries is a Hong Kong-based maker of textile dyeing and finishing machinery.
| Issuer: | Fong's Industries Co. Ltd.
|
| Issue: | Convertible unsubordinated unsecured notes
|
| Bookrunner: | Deutsche Bank
|
| Amount: | HK$800 million, including HK$200 million greenshoe already exercised
|
| Maturity: | May 10, 2011
|
| Coupon: | 0%
|
| Price: | Par of HK$10,000
|
| Yield: | 4.35%
|
| Redemption price: | 124.01%
|
| Conversion premium: | 35%
|
| Conversion price: | HK$8.37, subject to downward adjustments every year with a floor at 80% of the initial conversion price if the stock falls below the conversion price
|
| Conversion ratio: | 1,194.7431
|
| Takeover protection: | Change-of-control put
|
| Call protection: | Non-callable for two years, after that subject to 130% stock price threshold
|
| Puts: | Year two
|
| Pricing date: | April 19
|
| Settlement date: | May 10
|
| Listing: | Hong Kong Stock Exchange
|
| Stock symbol: | Hong Kong: 0641
|
| Stock price: | HK$6.20 at close April 19
|
|
|
© 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.
