By Rebecca Melvin
New York, Dec. 14 - Home Inns & Hotels Management Inc. priced $160 million of five-year convertible senior notes after the market close on Tuesday to yield 2% with an initial conversion premium of 20%, according to a news release.
The Regulation S and Rule 144A deal priced at the rich end of talk for the coupon, which was 2% to 2.5%, and at the cheap end of talk for the initial conversion premium, which was 20% to 25%.
There is a $24 million greenshoe for the offering that was sold via Credit Suisse and JPMorgan.
The notes will be convertible at $49.37 per American Depositary Share.
They will be non-callable for life with no puts. There is dividend and takeover protection.
Proceeds are expected to be used for new business development, investments in complementary businesses and assets, strategic acquisitions and general corporate purposes.
The notes and the ADSs into which the notes may be converted have not been registered. The company will file a shelf registration for resale of the notes and the company's ordinary shares represented by the ADSs.
Home Inns is a Shanghai-based hotel chain operating in China.
| Issuer: | Home Inns & Hotels Management Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $160 million
|
| Greenshoe: | $24 million
|
| Maturity: | 2015
|
| Bookrunners: | Credit Suisse and JPMorgan
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 20%
|
| Conversion price: | $49.37
|
| Conversion ratio: | 20.256 ADSs per bond
|
| Call: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes, via make-whole table
|
| Dividend protection: | Yes, via conversion rate adjustment
|
| Price talk: | 2%-2.5%, up 20%-25%
|
| Pricing date: | Dec. 14
|
| Settlement: | Dec. 20
|
| Distribution: | Regulation S and Rule 144A
|
| ADS symbol: | Nasdaq: HMIN
|
| ADS reference price: | $41.14
|
| Market capitalization: | $1.68 billion
|
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