REXLot greenshoe lifts 6% convertible bond add-on to HK$390 million

By Marisa Wong

Madison, Wis., Oct. 11 - REXLot Holdings Ltd. said that the lead manager of its recent add-on offering of 6% convertible bonds due 2016 exercised the HK$78 million over-allotment option in full, bringing the total size of the additional bonds to HK$390 million.

REXLot priced HK$312 million of the add-on convertible bonds at 109.5 on Sept. 3.

As previously reported, the additional bonds will be consolidated and form a single series with REXLot's existing 6% convertible bonds and will rank pari passu with the existing bonds. As of Sept. 3, the outstanding principal amount of the existing bonds was HK$536.8 million.

Daiwa Capital Markets Hong Kong Ltd. was the bookrunner and lead manager for the Regulation S deal, which closed on Sept. 28. The latest bonds are expected to be issued on Oct. 19.

The company previously said it also planned to issue up to HK$39 million of the 6% bonds to Kingly Profits Corp., an affiliate of Victor Chan, a connected person of the company.

As noted before, the initial conversion price is HK$0.6175, which is a 12.27% premium to the company's closing share price on Sept. 3.

The bonds are callable and putable at any time after two years.

Proceeds from the issue of the new bonds will be used for stock repurchases and general working capital.

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

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