New Issue: Fu Ji prices RMB 1.5 billion Hong Kong dollar settled 0% convertible bonds due 2010, up 31.24%

By Evan Weinberger

New York, Oct. 12 - Fu Ji Food and Catering Services Holdings Ltd. priced RMB 1.5 billion in Hong Kong dollar-settled zero-coupon convertible bonds due Oct. 18, 2010 with an initial conversion premium of 31.24%.

Citigroup Global Markets is the lead manager on the Regulation S transaction. The deal is expected to close Oct. 18.

The convertibles have a conversion price of HK$32.85 and a fixed exchange rate of HK$1 equal to RMB 0.96893.

The convertibles are callable subject to a 130% hurdle beginning April 18, 2009.

There are takeover and delisting protections.

Fu Ji is a Hong Kong-based restaurant operator with outlets throughout China. The company plans to use the proceeds to acquire a majority stake in Sky Charm Group Ltd., a holding company that operates the Golden Hans restaurant chain. A portion of the proceeds will go toward developing Fu Ji's railway catering operation and general corporate purposes.

Issuer: Fu Ji Food and Catering Services Holdings Ltd.

Issue: Hong Kong dollar-settled zero-coupon convertible bonds

Amount: RMB 1.5 billion

Maturity: Oct. 18, 2009

Coupon: 0%

Price: Par

Yield: 0%

Conversion premium: 31.24%

Conversion price: HK$32.85; fixed exchange rate of HK$1 equal to RMB 0.96893.

Call: Beginning April 18, 2009 subject to 130% hurdle

Lead manager: Citigroup Global Markets

Distribution: Regulation S

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