New York, Feb. 3 - Forefront International Holdings Ltd. adjusted its offering of convertible bonds, reducing the initial size and adding a further put option.
The deal was cut to $15 million principal amount from $20 million, but the greenshoe was increased to $20 million from $15 million, leaving the potential overall size unchanged at $35 million.
Forefront also added an additional put at par on May 2.
Forefront initially announced the deal in early January.
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.
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| Issue: | Convertible bonds
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| Amount: | $15 million principal amount
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| Greenshoe: | $20 million (subject to shareholder approval)
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| Maturity: | Jan. 20, 2009
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| Coupon: | 0%
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| Redemption price: | Par
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| 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
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| Put: | May 2, 2004 at par, Jan. 20, 2006 at 109.5, Jan. 20, 2007 at 116.9
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| Pricing date: | Dec. 31
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| Settlement date: | Jan. 20
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| Manager: | FB Gemini Ltd.
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| Distribution: | Regulation S
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