By Marisa Wong
Madison, Wis., Sept. 4 - REXLot Holdings Ltd. priced HK$312 million of additional 6% convertible bonds due 2016 at 109.5, according to a company announcement.
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 is HK$536.8 million.
Daiwa Capital Markets Hong Kong Ltd. is the bookrunner and lead manager for the Regulation S deal, which is expected to close on Sept. 28.
There is a 30-day over-allotment option for an additional HK$78 million of bonds.
The company said it also plans 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. Including the greenshoe and the bonds allotted to Kingly Profits, the maximum size of the add-on offering is HK$429 million.
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.
| Issuer: | REXLot Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | HK$312 million
|
| Greenshoe: | HK$78 million
|
| Maturity: | Sept. 28, 2016
|
| Coupon: | 6%, payable semiannually
|
| Price: | 109.5
|
| Conversion premium: | 12.27%
|
| Conversion price: | HK$0.6175
|
| Underwriter: | Daiwa Capital Markets Hong Kong Ltd.
|
| Call option: | At any time after two years
|
| Put option: | At any time after two years
|
| Pricing date: | Sept. 3
|
| Settlement date: | Sept. 28
|
| Distribution: | Regulation S
|
| Stock symbol: | Hong Kong: 555
|
| Stock price: | HK$0.55 at close Sept. 3
|
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