By Toni Weeks
San Luis Obispo, Calif., Aug. 26 – OSIM International Ltd. said it priced S$170 million of five-year convertible bonds with an up to S$30 million upsize option.
Earlier on Tuesday the company announced that it planned to issue S$150 million of the convertibles with an up to S$50 million upsize option.
Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch is the bookrunner and lead arranger for the Regulation S offering.
The exact terms of the bonds were set following an accelerated bookbuilding process. Settlement will be on Sept. 18.
The notes are convertible beginning on or after Oct. 29 up until 10 days prior to maturity or, if the notes have been called, up until seven business days prior to the redemption date. The initial conversion price is S$3.525, which is a 25% premium over the company's closing share price of S$2.82on Aug. 26.
The convertibles are putable at par on Sept. 18, 2017. They are callable at par after Sept. 18, 2017 if the company's share price for each of at least 20 of the 30 consecutive trading days during the 30 days prior to redemption is at least 125% of the early redemption amount divided by the conversion ratio.
If the bonds are not called, they will be redeemed at 110.46 at maturity.
Proceeds will be used to raise capital to roll out and enhance OSIM’s well-being and lifestyle business in Asia and elsewhere, to finance potential strategic acquisitions and for general working capital.
Based in Singapore, OSIM makes lifestyle products, such as massage chairs, that promote health.
| Issuer: | OSIM International Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | S$170 million
|
| Upsize option: | S$30 million
|
| Maturity: | Sept. 18, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion premium: | 25%
|
| Conversion price: | S$3.525
|
| Put option: | At par on Sept. 18, 2017
|
| Call option: | At par after Sept. 18, 2017 if price for 20 of 30 consecutive trading days during 30 days prior to redemption is at least 125% of conversion price
|
| Bookrunner: | Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch
|
| Pricing date: | Aug. 26
|
| Settlement date: | Sept. 18
|
| Stock symbol: | Singapore: O23
|
| Stock price: | S$2.82 at close Aug. 26
|
| Distribution: | Regulation S
|
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