By Jennifer Chiou
New York, Sept. 27 - Franshion Properties (China) Ltd. announced the pricing of $500 million of perpetual subordinated convertible securities callable in 2015 at par to yield 6.8%, with an initial conversion premium of 20.94%.
BOC International, Deutsche Bank AG, Hong Kong Branch, J.P. Morgan Securities Ltd. and Standard Chartered Bank are the agents.
There is an over-allotment option for $100 million of additional securities.
The initial conversion price is HK$2.83 per share, a premium of 20.94% over the closing price of HK$2.34 per share on Monday. Assuming full conversion of securities at that price, the securities will be convertible into 1.64 billion shares, representing 17.95% of Franshion's issued share capital.
The securities are callable in whole at any time after Oct. 11, 2015 at 110% of par. They are convertible any time on or after Oct. 11, 2011.
Proceeds from the offering will go towards financing new and existing projects, including construction costs and land costs, and for general corporate purposes.
The developer and operator of commercial real estate projects is based in Hong Kong.
| Issuer: | Franshion Properties (China) Ltd.
|
| Issue: | Perpetual subordinated convertible securities callable 2015
|
| Amount: | $500 million
|
| Greenshoe: | $100 million
|
| Maturity: | Perpetual
|
| Agents: | BOC International, Deutsche Bank AG, Hong Kong Branch, J.P. Morgan Securities Ltd. and Standard Chartered Bank
|
| Coupon: | 6.8%
|
| Price: | Par
|
| Yield: | 6.8%
|
| Conversion premium: | 20.94%
|
| Conversion price: | HK$2.83
|
| Call: | In whole after Oct. 11, 2015 at 110% of par
|
| Pricing date: | Sept. 27
|
| Settlement: | Oct. 11
|
| Stock listing: | Hong Kong: 0817
|
| Stock reference: | HK$2.34
|
| Distribution: | Regulation S
|
| Market capitalization: | HK$21.44 billion
|
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