REXLot greenshoe exercised, lifts 4.5% convertibles to HK$1.6 billion

By Marisa Wong

Madison, Wis., April 17 - REXLot Holdings Ltd. said it completed its issue of 4.5% five-year convertible bonds totaling HK$1.6 billion on Thursday, which includes a fully exercised greenshoe.

The company announced on April 10 that it priced HK$1.2 billion of the 4.5% convertible bonds at par with a 30-day over-allotment option for an additional HK$400 million of the bonds.

The company had also announced plans to issue up to HK$300 million of the 4.5% 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 offering is HK$1.9 billion.

Daiwa Capital Markets Hong Kong Ltd. and Merrill Lynch Far East Ltd. were the managers for the Regulation S deal.

The initial conversion price is HK$1.407 per share, which is a 34% premium to HK$1.05, the company's closing share price on April 9.

The bonds are non-callable for three years and then provisionally callable at a 130% hurdle. The bonds are also subject to a clean-up call and are putable after three years. The redemption price is par.

Proceeds will be used to finance business expansion and for general corporate and working capital needs.

Listing of the bonds on the Singapore Exchange is expected to occur on April 21.

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

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