By Rebecca Melvin
New York, Oct. 25 - Semiconductor Manufacturing International Corp. priced $200 million of 0% five-year convertible bonds on a bought-deal basis that will have no yield and with an initial conversion premium of 35%, according to a news release.
The Regulation S bonds will be sold in no less than six places, according to the joint managers of the deal, which were J.P. Morgan Securities plc and Deutsche Bank AG, Hong Kong Branch.
The initial conversion price of the bonds is HK$0.7965.
It is estimated that, assuming Datang and Country Hill each exercise their respective pre-emptive rights in full, the net proceeds from the issue of the placed bonds, the Datang pre-emptive bonds and the Country Hill pre-emptive bonds will be about $281.4 million.
Proceeds will be used for capital expenditures, including manufacturing capacity expansion, and for general corporate purposes.
Application is being made to list the bonds on the Singapore stock exchange.
Shanghai-based Semiconductor Manufacturing is a made-to-order chip supplier.
| Issuer: | Semiconductor Manufacturing International Corp.
|
| Issue: | Convertible bonds
|
| Amount: | $200 million
|
| Maturity: | Nov. 7, 2018
|
| Joint managers: | J.P. Morgan Securities plc and Deutsche Bank AG, Hong Kong Branch
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Initial conversion premium: | 35%
|
| Initial conversion price: | HK$0.7965
|
| Share reference price: | HK$0.59 as of close Oct. 24
|
| Pricing date: | Oct. 24
|
| Closing date: | Nov. 7
|
| Distribution: | Regulation S
|
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