By Evan Weinberger
New York, July 11 - Pine Agritech Ltd. priced RMB 2 billion in zero-coupon convertible bonds due July 27, 2012 with a 3.4% yield and an initial conversion premium of 51%.
The bonds priced Tuesday after market close.
UBS AG is the bookrunner of the Regulation S transaction.
The convertibles were offered at par.
There is a RMB 300 million over-allotment option.
The convertibles have a conversion price of S$0.9815. The redemption price of 118.36% will be paid in the United States dollar equivalent of the renminbi principal amount of each convertible on the final redemption date.
The bonds have call protection for three years, subject to a 130% hurdle, and can only be called in whole at the U.S. dollar equivalent amount of the early redemption amount in renminbi at the prevailing exchange rate.
The convertibles are puttable on July 27, 2010 at the U.S. dollar equivalent of 110.64% of the outstanding renminbi principal amount. They are also putable upon change of control of the company and if Pine Agritech is delisted from the Singapore Stock Exchange.
Pine Agritech is a Linyi City, China-based soy producer. The company plans to use the proceeds to expand its production capacity and for general corporate purposes.
| Issuer: | Pine Agritech Ltd.
|
| Issue: | Zero-coupon convertible bonds
|
| Amount: | RMB 2 billion
|
| Greenshoe: | RMB 300 million
|
| Maturity: | July 27, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 118.36%, redeemed in U.S. dollar equivalent of renminbi amount
|
| Yield: | 3.4%
|
| Conversion premium: | 51%
|
| Conversion price: | S$0.9815
|
| Call: | After three years, subject to a 130% hurdle; callable only in full; paid in U.S. dollar equivalent.
|
| Put: | July 27, 2010 at 110.64% of outstanding renminbi principal amount, redeemed in U.S. dollar equivalent
|
| Bookrunner: | UBS AG
|
| Pricing date: | July 10, after market close
|
| Settlement date: | July 27
|
| Distribution: | Regulation S
|
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