American Oriental Bioengineering withdraws $125 million offering of convertible perpetual preferreds

By Rebecca Melvin

New York, June 5 - American Oriental Bioengineering Inc. said that it has withdrawn its convertible preferred stock offering announced June 2 due to market conditions that resulted in terms that were not acceptable to the company, according to a news release.

The company had planned to sell about $125 million of convertible perpetual preferred stock talked with a dividend of 1.5% to 2% and with an initial conversion premium of 12.5% to 17.5%.

There was an additional $25 million greenshoe.

Piper Jaffray was the bookrunner of the offering, with Oppenheimer and CRT Capital acting as co-managers.

Net proceeds had been earmarked for repurchases of outstanding stock, for funding a prepaid forward contract that the company would have concurrently entered into; and for working capital, general corporate purposes and possible acquisitions and investments.

Shenzhen, China-based American Oriental makes and distributes pharmaceuticals and nutraceuticals primarily for Chinese markets.

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