REXLot greenshoe lifts 6% underwritten convertibles to HK$459 million

By Marisa Wong

Madison, Wis., Oct. 28 - REXLot Holdings Ltd. announced that the lead manager of its recent offering of 6% convertible bonds due 2016 partially exercised the HK$145.5 million over-allotment option.

Bookrunner Daiwa Capital Markets Hong Kong Ltd. subscribed for an additional HK$70 million of the bonds, increasing the size of the underwritten convertible bond issue to HK$459 million.

REXLot issued HK$389 million of the 6% convertible bonds on a fully underwritten basis on Sept. 28. In conjunction with the underwritten offer, REXLot also placed 6% convertibles with connected persons and certain individuals from the management of the company. The company had issued a total of HK$816.9 million of underwritten and privately placed bonds.

With the partially exercised greenshoe, the total issue size of the 6% convertibles is HK$886.9 million.

The initial conversion price is HK$0.6175 per share.

As previously reported, the bonds are callable at any time after Sept. 28, 2014.

Proceeds will be used for general working capital and for pursuing future opportunities in the lottery market in China, particularly in the electronic lottery market.

The greenshoe bonds will be issued on Nov. 7.

Based in Hong Kong, REXLot provides machines and services to the Chinese lottery market.

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