By Marisa Wong
Morgantown, W.Va., July 15 – Red Star Macalline Group Corp. Ltd. said it issued RMB 3 billion of second-tranche corporate bonds at par on Thursday.
The bonds consist of two types: five-year bonds bearing interest at 3½% and seven-year bonds with a coupon of 4.29%. The issue amounts for the two types of bonds were not disclosed.
The coupons were talked at 3.3% to 4½% and 4% to 5%, respectively. The exact rates were determined through a book-building process.
The company will have the option to adjust the coupon and holders will have a put option at the end of three years for the five-year bonds and at the end of five years for the seven-year bonds.
The initial size for the second tranche of corporate bonds was RMB 1.5 billion, and the offering included a RMB 1.5 billion over-allotment option.
Zhongshan Securities Co., Ltd. is the lead underwriter and bookrunner. China International Capital Corp. Ltd., China Merchants Securities Co., Ltd. and China Investment Securities Co., Ltd. are the other joint underwriters. China International Capital is also the bond trustee.
The company had previously proposed to issue up to RMB 10 billion of corporate bonds in China. The first tranche, totaling RMB 5 billion, was completed in November 2015.
The company intends to use the proceeds from the second tranche to repay loans.
Based in Hong Kong, Red Star Macalline is principally engaged in operating and managing home improvement and furnishings shopping malls.
| Issuer: | Red Star Macalline Group Corp. Ltd.
|
| Issue: | Corporate bonds, second tranche
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| Amount: | RMB 3 billion
|
| Price: | Par
|
| Underwriters: | Zhongshan Securities Co., Ltd. (lead); China International Capital Corp. Ltd., China Merchants Securities Co., Ltd. and China Investment Securities Co., Ltd. (joint)
|
| Settlement date: | July 14
|
|
|
| Five-year bonds
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| Maturity: | Five years
|
| Coupon: | 3½%, adjustable after end of third year
|
| Put option: | After end of third year
|
| Price talk: | 3.3%-4½%
|
|
|
| Seven-year bonds
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| Maturity: | Seven years
|
| Coupon: | 4.29%, adjustable after end of fifth year
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| Put option: | After end of fifth year
|
| Price talk: | 4%-5%
|
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