Lonking cuts conversion price of zero-coupon convertibles due 2014

By Marisa Wong

Madison, Wis., Sept. 12 - Lonking Holdings Ltd. adjusted the conversion price of its $135 million zero-coupon convertible bonds due 2014, according to a company announcement.

The conversion price was lowered to HK$3.10 from HK$3.20, effective Sept. 12.

The price adjustment is due to an interim dividend payment.

As of Wednesday, the outstanding principal amount of the bonds is $4.15 million. Following the adjustment, the maximum number of shares issuable upon full conversion of the outstanding bonds is 10,375,268.

Holders of $125.66 million of the convertibles recently exercised their put option. As previously reported, the put bonds were redeemed on Aug. 24 at 124.718.

Prior to the redemption, the company repurchased $5.19 million of the bonds at 124 in an over-the-counter market transaction on July 6.

Lonking is a construction machinery manufacturer based in Fujian, China.

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