China’s Red Star Macalline sets coupon at 4½% for five-year bonds

By Angela McDaniels

Tacoma, Wash., Nov. 9 – Red Star Macalline Group Corp. Ltd. said the coupon rate for its five-year corporate bonds will be 4½%. Talk for the coupon was 3.8% to 4.8%.

The bonds will be issued to investors on Tuesday and Wednesday, according to a company announcement.

As previously reported, the company expects to issue RMB 4 billion of the bonds with a RMB 2 billion over-allotment option.

After three years, the company will have the option to increase the coupon and holders will have a put option.

China International Capital Corp. Ltd. is the lead underwriter, bookrunner and trustee. Zhongshan Securities Co., Ltd., China Merchants Securities Co., Ltd., Haitong Securities Co., Ltd. and China Investment Securities Co., Ltd. are joint underwriters.

The company intends to use proceeds to repay loans and to replenish working capital.

The company had previously proposed to issue up to RMB 10 billion of corporate bonds in China.

Based in Hong Kong, Red Star Macalline is principally engaged in operating and managing home improvement and furnishings shopping malls.

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