New Issue: Forefront International sells $20 million convertibles at 0% coupon, up 16.1%

New York, Jan. 7 - Forefront International Holdings Ltd. agreed to sell $20 million principal amount of five-year 0% convertible bonds with a 16.1% initial conversion premium.

The securities will be sold on a best-efforts basis by FB Gemini Ltd. to professional investors outside the United States. There will not be a public offering in Hong Kong.

Forefront, a Hong Kong-based distributor of heavy commercial vehicles and related repair and maintenance services, will use the $19.5 million net proceeds to repay its $12 million syndicated term loan due April 2005 and for working capital and general corporate purposes.

Issuer:	Forefront International Holdings Ltd.
Issue:	Convertible bonds
Amount:	$20 million principal amount
Greenshoe:	$15 million (subject to shareholder approval)
Maturity:	Jan. 20, 2009
Coupon:	0%
Redemption price:	Par
Conversion premium:	16.1% over HK$2.235 closing price on Dec. 31
Conversion price:	HK$2.70
Conversion price reset:	After 6, 18, 30, 42 and 54 months if volume-weighted average price is less than conversion price, with floor of 70% of initial price
Call:	Jan. 20, 2007 onwards at par subject to 130% hurdle
Put:	Jan. 20, 2006 at 109.5, Jan. 20, 2007 at 116.9
Pricing date:	Dec. 31
Settlement date:	Jan. 20
Manager:	FB Gemini Ltd.
Distribution:	Regulation S

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