By Kenneth Lim
Boston, Feb. 17 - Hong Kong-based VST Holdings Ltd. priced HK$66 million of two-year zero-coupon convertible bonds at a 7.5% yield and an initial conversion premium of 36.03%.
ABN Amro is the bookrunner for the deal.
The notes mature on March 2, 2008. At the initial conversion price of HK$0.72 per share, they may be exchanged for just under 1.39 million VST shares.
VST stock closed at HK$0.82 on Friday, 32.26% more than its HK$0.62 close on Wednesday. The stock was suspended on Thursday for the announcement of the deal.
There is a clean-up call if less then 10% of the convertibles remain outstanding. The conversion price may be adjusted for dividend payouts, and investors may force early redemption in a takeover situation.
VST, which distributes IT products such as data storage devices, media products and computer motherboards, said it is trying to capitalize on the current interest rate environment and market interest in convertible bonds to raise working capital and funds for future development.
| Issuer: | VST Holdings Ltd.
|
| Issue: | Convertible unsubordinated notes
|
| Bookrunner: | ABN Amro
|
| Amount: | HK$66 million
|
| Maturity: | March 2, 2008
|
| Coupon: | 0%
|
| Price: | Par of HK$1 million
|
| Redemption price: | 115.865
|
| Yield: | 7.5%
|
| Conversion premium: | 36.03%, based on 20-day average closing price up to Feb. 15
|
| Conversion price: | HK$0.72
|
| Conversion ratio: | 1.39 million
|
| Dividend protection: | Yes
|
| Takeover protection: | Put option at early redemption yield of 7.5% per year
|
| Call protection: | Issuer may redeem all the bonds if at least 90% of the bonds have been converted, redeemed or purchased and canceled
|
| Symbol: | HKEX: 856
|
|
|
© 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.
