Two-year convertibles to fund operations of Sun Mountain Yabuli Resort
By Devika Patel
Knoxville, Tenn., Oct. 28 - Mountain China Resorts (Holding) Ltd. said it completed a sale of floating-rate convertibles bonds.
The deal consisted of C$4.6 million in convertible bonds due Oct. 27, 2012, which will accrue interest at Libor plus 300 bps. It may sell an additional C$2 million in convertibles by Nov. 30.
The bonds are initially convertible into shares at C$0.12 per share, which is a 14.29% discount to the Oct. 27 closing share price of C$0.14.
Proceeds will be used to provide working capital and to fund the continuing operations of Mountain China's Sun Mountain Yabuli Resort.
The Vancouver, B.C., company develops destination ski resorts in China.
| Issuer: | Mountain China Resorts (Holding) Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | C$4.6 million
|
| Greenshoe: | C$2 million
|
| Maturity: | Oct. 27, 2012
|
| Coupon: | Libor plus 300 bps
|
| Price: | Par
|
| Yield: | Libor plus 300 bps
|
| Conversion price: | C$0.12
|
| Conversion discount: | 14.29%
|
| Warrants: | No
|
| Settlement date: | Oct. 28
|
| Stock symbol: | TSX Venture: MCG
|
| Stock price: | C$0.18 at close Oct. 28
|
| Market capitalization: | C$36.51 million
|
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