Hung Hing drops conversion price on zero-coupon convertibles due to dividend

By Jennifer Chiou

New York, Dec. 29 - Hong Kong's Hung Hing Printing Group Ltd. said it lowered the conversion price of its HK$750 million of five-year zero-coupon convertible bonds to HK$6.32 per share from HK$6.46 per share.

The change is the result of a HK$0.095 per share dividend declaration, which will be payable on Jan. 11.

The bonds priced on March 2, 2006 to yield 2.7% with an initial conversion premium of 30%.

Initially, each bond could have been exchanged for about 1,479.29 Hung Hing shares at an initial conversion price of HK$6.76.

As already reported, if the latest 15-day average of the stock falls below the current conversion price on each anniversary of the bond, Hung Hing may reduce the conversion price down to a floor of 80% of the initial conversion price.

Hung Hing prints and makes paper, boxes and corrugated cardboard, and has plants in Heshan, China, and Zhongshan, China.

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