By Rebecca Melvin
New York, April 8 - Shangri-La Asia Ltd. priced $500 million of 0% five-year convertible bonds at par with a redemption price of 111.84% to yield 2.25% with an initial conversion premium of 35%, according to a company news release Friday.
There is a $100 million over-allotment option.
The Regulation S offering is being sold via joint lead managers and bookruners HongKong and Shanghai Banking Corp. Ltd. and BOC International Asia Ltd.
The initial conversion price of the bonds is set at HK$29.03, which will be translated using a fixed rate of US$1.00 equals HK$7.77.
There are puts in the event of delisting or takeover.
The bonds can be converted after June 22, 2011 and will mature May 12, 2016.
Proceeds will be used for general working capital, to fund future capital expenditures and to repay bank borrowings.
The company plans to list the bonds on the Singapore Exchange Securities Trading Ltd.
Shangri-La is a Hong Kong-based luxury hotel company.
| Issuer: | Shangri-La Asia Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $500 million
|
| Greenshoe: | $100 million
|
| Maturity: | May 12, 2016
|
| Joint lead managers: | HongKong and Shanghai Banking Corp. Ltd., BOC International Asia Ltd.
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 111.84%
|
| Yield: | 2.25%
|
| Conversion premium: | 35%
|
| Conversion price: | HK$29.03 (using US$1.00 = HK$7.77 exchange rate)
|
| Takeover protection: | Yes
|
| Pricing date: | April 7
|
| Settlement date: | May 12
|
| Distribution: | Regulation S
|
| Stock symbol: | Hong Kong: 0069
|
| Stock reference price: | HK$21.50 at close April 7
|
| Market capitalization: | HK$59.92 billion
|
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