By William Gullotti
Buffalo, N.Y., Aug. 29 – China’s Red Star Macalline Group Corp. Ltd. priced $249.7 million 5.2% credit enhanced bonds due 2025 at par, according to a listing notice with an appended offering circular on Monday.
The Regulation S bonds are backed by an irrevocable standby letter of credit issued by Bank of Shanghai Co., Ltd., Beijing Branch.
The bonds feature a make-whole call, exercisable by the issuer at any time, at the greater of par and the sum of the present value of the payments of principal and interest due, discounted at Treasuries plus 25 basis points. They may also be redeemed early in whole, but not in part, for taxation reasons at par plus interest and are subject to mandatory redemption at the same price if a pre-funding failure occurs.
Bondholders will be able to exercise put rights at par plus interest if a change of control or no registration event occurs.
BOSC International, China International Capital Corp., Sigma Capital, Haitong International and Industrial Banks Co., Ltd., Hong Kong Branch are the joint lead managers and joint bookrunners for the offering with BOSC, China International and Sigma also acting as joint global coordinators.
Proceeds will be used for repaying interest-bearing debts.
Listing for the bonds is expected on the Hong Kong Stock Exchange effective Aug. 29.
The issuer is a Shanghai-based operator and manager of home furnishings shopping malls.
| Issuer: | Red Star Macalline Group Corp. Ltd.
|
| LoC issuer: | Bank of Shanghai Co., Ltd., Beijing Branch
|
| Amount: | $249.7 million
|
| Issue: | Credit enhanced bonds
|
| Maturity: | Aug. 26, 2025
|
| Bookrunners: | BOSC International, China International Capital Corp., Sigma Capital, Haitong International and Industrial Banks Co., Ltd., Hong Kong Branch
|
| Trustee: | Citicorp International Ltd.
|
| Counsel to issuer: | Davis Polk & Wardwell (England), Llinks Law Offices (China)
|
| Counsel to underwriters: | Clifford Chance (England), Commerce & Finance Law Offices (China)
|
| Coupon: | 5.2%
|
| Price: | Par
|
| Yield: | 5.2%
|
| Call: | For taxation reasons at par plus interest; make-whole at the greater of par and the sum of the present value the payments of principal and interest due, discounted at Treasuries plus 25 bps; mandatory at par plus interest if a pre-funding failure occurs
|
| Change of control: | At par plus interest
|
| No registration event: | At par plus interest
|
| Pricing dates: | Aug. 23, amended Aug. 25
|
| Issue date: | Aug. 26
|
| Listing date: | Aug. 29
|
| Distribution: | Regulation S
|
| ISIN: | XS2516930489
|
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