12% senior secured bonds will convert into American Depositary Shares
By Devika Patel
Knoxville, Tenn., Nov. 25 – The9 Ltd. said it signed a definitive agreement to sell $40.05 million of 12% senior secured convertible bonds due 2018 to Splendid Days Ltd. in three tranches through a placement. The deal priced on Nov. 13 and was announced as a $45 million offering on Nov. 16.
The bonds will be convertible into American Depositary Shares at an initial conversion price of $2.60, $5.20 and $7.80, respectively, for each tranche, per ADS. The conversion prices are 45.25%, 190.5% and 335.75% premiums to the $1.79 closing price of the stock on Nov. 13.
Splendid Days will also receive $9.95 million of warrants.
Based in Shanghai, The9 develops online games and related services.
| Issuer: | The9 Ltd.
|
| Issue: | Senior secured convertible bonds
|
| Amount: | $40.05 million
|
| Maturity: | 2018
|
| Coupon: | 12%
|
| Conversion prices: | $2.60, $5.20, $7.80
|
| Warrants: | $9.95 million of warrants
|
| Investor: | Splendid Days Ltd.
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| Pricing date: | Nov. 13
|
| Amended: | Nov. 25
|
| Stock symbol: | Nasdaq: NCTY
|
| Stock price: | $1.79 at close Nov. 12
|
| Market capitalization: | $75.86 million
|
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