SINA taps market with $700 million deal; YY offering in pipeline; iStar Financial rises

By Cristal Cody

Tupelo, Miss., Nov. 15 - SINA Corp. said on Friday that it sold a $700 million offering of 1% five-year convertible senior notes with about a 45% initial conversion premium in a Rule 144A transaction.

The notes traded earlier in the day at 101 bid versus the underlying share price of $85.15, a market source said.

SINA's shares closed Friday at $85.05, down 26 cents or 0.3%.

SINA said in a news release that the notes due Dec. 1, 2018 will be convertible into the company's ordinary shares, at the option of the holders, based on an initial conversion rate of 8.0841 ordinary shares per $1,000 principal amount of notes. The rate represents about a 45% conversion premium over the closing trading price of the company's ordinary shares of $85.31 per share on Thursday.

The offering includes a $100 million greenshoe.

Goldman Sachs Asia was the bookrunner, according to a market source.

Holders have the right to require the company to repurchase all or part of the notes for cash on Dec. 1, 2016 or upon the occurrence of certain fundamental changes.

The company plans to use $100 million of the proceeds to repurchase outstanding shares and the remainder for general corporate purposes, including working capital needs and potential acquisitions.

SINA is a Shanghai-based online media company.

Deal pipeline

Chinese social media company YY Inc.'s $250 million offering of convertible senior notes due Nov. 15, 2018, announced on Thursday remains in the pipeline.

The notes will be convertible into American Depositary Shares, each of which is equal to 20 common shares.

The deal, to be sold under Rule 144A and Regulation S, will include a $50 million over-allotment option.

Proceeds will be used to repurchase up to $50 million of outstanding ADSs and for general corporate purposes, including working capital and potential acquisitions.

YY also will enter into capped call transactions to reduce the potential dilution from the new convertibles.

YY is a Guangzhou, China-based social media company.

iStar Financial rises

iStar Financial Inc.'s existing 3% convertible notes due 2016 last traded with a 128 handle, up from the 125 area seen on Wednesday, according to a market source on Friday.

iStar Financial launched a $175 million offering of convertible senior notes due Nov. 15, 2016 on Wednesday.

The Rule 144A deal will include a $25 million over-allotment option, according to a press release.

Proceeds will be used, along with cash on hand, to redeem $201 million of 5.7% senior notes due March 2014.

The deal will price in conjunction with a repurchase of 1.7 million shares of common stock.

iStar is a New York-based real estate investment trust.

Mentioned in this article:

iStar Financial Corp. NYSE: SFI

SINA Corp. Nasdaq: SINA

YY Inc. Nasdaq: YY

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