By Kenneth Lim
Boston, Oct. 10 - Hong Kong's Fu Ji Food and Catering Services Holdings Ltd. on Monday priced HK$1 billion of three-year zero-coupon convertible unsubordinated bonds to yield 5.75% with an initial conversion premium of 26%.
The convertibles were issued at par and will be redeemed at maturity at 118.54% of the principal. The initial conversion price is HK$17.51 per share.
The deal amount includes an over-allotment option for HK$200 million that was exercised upon pricing.
UBS Investment Bank was the bookrunner of the Regulation S offering.
The convertibles are non-callable for the first two years, after which they may be provisionally called subject to a hurdle at 130% of the early redemption amount.
There are no investor puts, except in a change-of-control situation.
The conversion price will be adjusted for dividend payouts on the common stock.
Fu Ji provides catering and restaurant services and convenience food products in China. It said said RMB 871 million of the proceeds will be used to expand the capacity of its sourcing, distribution and processing facilities, and for working capital.
| Issuer: | Fu Ji Food and Catering Services Holdings Ltd.
|
| Issue: | Convertible unsubordinated bonds
|
| Bookrunner: | UBS Investment Bank
|
| Amount: | HK$1 billion, including HK$200 million greenshoe already exercised
|
| Maturity: | Nov. 9, 2009
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 118.54%
|
| Yield: | 5.75%
|
| Conversion premium: | 26%
|
| Conversion price: | HK$17.51
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before May 10, 2008, thereafter callable subject to 130% hurdle
|
| Puts: | None
|
| Pricing date: | Oct. 9
|
| Settlement date: | Nov. 9
|
| Distribution: | Regulation S
|
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