By Evan Weinberger
New York, Jan. 24 - Solarfun Power Holdings Co. Ltd. priced $150 million in 3.5% convertible senior notes due 2018 with a 27.5% initial conversion premium Wednesday after the market close.
Morgan Stanley is the bookrunner on the Rule 144A transaction.
There is a $22.5 million over-allotment option.
The settlement date is expected to be Jan. 29.
The conversion price is set at $19.125 and the conversion ratio is set at 52.2876.
The convertibles have call protection for the first seven years. They are callable subject to a 130% hurdle in the last three years. There is a put in year seven.
The notes will be convertible into American Depository Shares representing ordinary shares of Solarfun stock.
Solarfun is making a separate concurrent offering of 7,843,140 ADSs that will be lent to Morgan Stanley. Morgan Stanley will sell them through an affiliate so investors can hedge their positions. Solarfun will not receive any proceeds from these transactions.
The convertibles carry standard dividend and takeover protection.
Solarfun is a Shanghai-based solar power components maker. The company plans to use the proceeds to purchase raw materials, capital expenditures, pay down debt and general corporate purposes.
Issuer: Solarfun Power Holdings Co. Ltd.
Issue: Convertible senior notes
Amount: $150 million
Greenshoe: $22.5 million
Maturity: 2018
Coupon: 3.5%
Price: Par
Yield: 3.5%
Conversion premium: 27.5%
Conversion price: $19.125
Conversion ratio: 52.2876
| Call: | Protected for first seven years; callable subject to 130% hurdle last three years
|
| Put: | Put in year seven
|
| Bookrunner: | Morgan Stanley
|
| Distribution: | Rule 144A
|
| Pricing date: | Jan. 23
|
| Settlement date: | Jan. 29
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
