By Abigail W. Adams
Portland, Me., Nov. 8 – AviChina Industry & Technology Co. Ltd. priced RMB 1.3 billion six-year adjustable rate convertible bonds at par prior to the market open on Thursday with an initial conversion premium of 3.2%, according to a company news release.
The bonds will be issued by non-wholly owned subsidiary China Aviation Optical-Electrical Technology Co., Ltd., or Jonhon Optronic, and convertible into Jonhon Optronic A shares at an initial conversion price of RMB 40.26.
The bonds will carry a coupon of 0.2% in year one, 0.5% in year two, 1% in year three, 1.5% in year four, 1.8% in year five and 2% in year six.
The bonds will be redeemed at maturity at 105% of par including interest. The bonds are callable and putable upon certain conditions.
AviChina Industry subscribed to RMB 300 million of the convertible bonds, according to the news release.
Proceeds will be used for investment projects and working capital.
AviChina is a Beijing-based company engaged in the research, development, manufacture and sale of civil aviation products. Jonhon Optronic is a Luoyang, China-based electronic manufacturer.
| Issuer: | China Aviation Optical-Electrical Technology Co., Ltd. (Jonhon Optronic)
|
| Securities: | Convertible corporate bonds
|
| Amount: | RMB 1.3 billion
|
| Maturity: | 2024
|
| Coupon: | 0.2% in year one, 0.5% in year two, 1% in year three, 1.5% in year four, 1.8% in year five and 2% in year six
|
| Price: | Par
|
| Redemption price at maturity: | 105%
|
| Conversion premium: | 3.2%
|
| Conversion price: | RMB 40.26
|
| Call options: | Yes, under certain conditions
|
| Put options: | Yes, under certain conditions
|
| Pricing date: | Nov. 8
|
| Stock symbol: | SHE: 002179
|
| Stock price: | RMB 39 at market close Nov. 7
|
| Market capitalization: | RMB 29.41 billion
|
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