By Rebecca Melvin
Princeton, N.J., Dec. 21 - Hong Kong's Lee & Man Paper Manufacturing Ltd. said it priced HK$1 billion of five-year 0% convertible bonds to yield 4.5%, with an initial conversion premium of 40%.
The bonds, which will mature in 2011, were sold via bookrunner Deutsche Bank AG (Hong Kong branch). The deal included HK$800 million principal amount and HK$200 million as an overallotment option that has already been exercised.
Proceeds are expected to be used to finance the previously announced acquisition of Paper Machine PM VIII as well as possible future acquisitions and for working capital and general business purposes
Hong Kong-based Lee & Man is a paper and packaging producer.
| Issuer: | Lee & Man Paper Manufacturing Ltd.
|
| Issue: | Convertible bonds
|
| Bookrunner: | Deutsche Bank AG Hong Kong branch
|
| Amount: | HK$800 million
|
| Greenshoe: | HK$200 million (already exercised)
|
| Maturity: | Jan. 13, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 124.92
|
| Yield: | 4.5%
|
| Conversion premium: | 40%
|
| Conversion price: | HK$12.04
|
| Calls: | Non-callable for two years, after that subject to 130% hurdle
|
| Puts: | In year two
|
| Pricing date: | Dec. 20
|
| Settlement: | Jan. 13
|
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