Lion Diversified unit may solicit consents to amend 6% exchangeables

By Marisa Wong

Madison, Wis., Sept. 5 - Lion Diversified Holdings Bhd. announced that its wholly owned subsidiary, Excel Step Investments Ltd., is considering amending its $132,111,000 6% exchangeable bonds due 2012.

The bonds were issued on Nov. 16, 2007 and were previously amended on Sept. 2, 2010. The bonds are exchangeable into ordinary shares of Parkson Holdings Bhd.

If Excel chooses to amend the bonds, it will solicit consents from bondholders to

• Extend the maturity date by two years to Nov. 16, 2014;

• Make a one-time cash payment of $4,381,732, which is equal to 6.4173% of $68.28 million, the principal amount of bonds that will be outstanding as of Nov. 16;

• Lower the redemption price to par from 106.4173;

• Set a partial redemption schedule, with $4,618,268 to be redeemed on Nov. 16, $5 million to be redeemed on May 16, 2013, $5.5 million to be redeemed on Nov. 16, 2013 and $5.5 million to be redeemed on May 16, 2014;

• Reset the exchange price to RM 5.3050 per share on Nov. 16, to RM 4.8883 per share on May 16, 2013, to RM 4.4300 per share on Nov. 16, 2013 and to RM 3.9717 per share on May 16, 2014;

• Provide dividend protection. No adjustments will be made to the exchange price in the event of a Parkson capital distribution; and

• Allow the bonds to be callable at any time if the volume-weighted average price of Parkson shares exceeds 120% of the prevailing exchange price.

The proposed amendments, if pursued, are expected to be completed by the fourth quarter.

Formerly known as Chocolate Products (Malaysia) Bhd., Lion makes steel and electronic components and is involved in property development. The company is based in Kuala Lumpur, Malaysia.

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