By Kenneth Lim
Boston, May 7 - Hong Kong's New World China Land Ltd. priced RMB 2.5 billion of five-year zero-coupon exchangeable unsubordinated unsecured bonds to yield 2.5% with an initial exchange premium of 36.1% over its May 3 closing stock price.
The exchangeable was offered at par. It was issued by wholly owned subsidiary New World BVI but is exchangeable into New World China's Hong Kong-listed common stock.
There is an over-allotment option for a further RMB 300 million.
Deutsche Bank is the bookrunner of the Regulation S offering.
The exchangeables are non-callable for the first three years and may be called after that subject to a hurdle at 130% of the exchange price. The bonds may be put in the third year.
The exchangeables have dividend and takeover protection.
New World China, a Hong Kong-based property developer, said the proceeds of the deal will be used to develop a project in Beijing and for working capital.
| Issuer: | New World China BVI
|
| Issue: | Exchangeable unsubordinated unsecured bonds
|
| Exchange property: | New World China Land Ltd. common stock
|
| Bookrunner: | Deutsche Bank
|
| Amount: | RMB 2.5 billion
|
| Greenshoe: | RMB 300 million
|
| Maturity: | June 11, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 103.81%
|
| Yield: | 2.5%
|
| Exchange premium: | 36.1%
|
| Exchange price: | HK$8.044
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before June 11, 2010, thereafter callable subject to hurdle at 130% of exchange price
|
| Puts: | June 11, 2010
|
| Pricing date: | May 4
|
| Settlement date: | June 11
|
| Guarantees: | New World China Land Ltd.
|
| Distribution: | Regulation S
|
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