New Issue: Hong Kong's Norstar sells $40 million convertibles to yield 4%, up 29.5%

New York, Dec. 13 - Norstar Founders Group Ltd. priced $40 million of zero-coupon convertible bonds to yield 4% with a 29.5% initial conversion premium.

ICEA Capital Ltd. was bookrunner for the offering.

Norstar will use the proceeds to buy 40% of the shares of Profound Global Ltd., which has an indirect equity interest in two Chinese companies distributing auto parts and manufacturing metal hardware products.

Norstar is a Hong Kong-based auto parts maker.

Issuer:	Norstar Founders Group Ltd.
Issue:	Convertible bonds
Amount:	$40 million
Maturity:	Dec. 16, 2007
Coupon:	0%
Redemption price:	112.4864
Yield:	4%
Initial conversion premium:	29.5% (over five-day average, 28.57% over closing price)
Conversion price:	HK$2.70 (Fixed exchange rate of HK$7.77 = $1)
Call:	Dec. 16, 2006 onwards at price to give yield to call of 4% subject to 130% hurdle
Put:	Dec. 16, 2006 at 108.16
Pricing date:	Dec. 8
Settlement date:	Dec. 16
Bookrunner:	ICEA Capital Ltd.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.