By Susanna Moon
Chicago, June 20 – SMI Holdings Group Ltd. said it will issue HK$400 million of 8.5% two-year notes to Cheer Hope Holdings Ltd., an indirect wholly owned subsidiary of CCB International (Holdings) Ltd., which may be extended for another year.
The company also will sell $43.6 million principal amount of 8.5% two-year notes to Abundant Ally Ltd., an indirect wholly owned subsidiary of Huarong International Financial Holdings Ltd.
SMI entered into subscription agreements with the two investors with proceeds slated for general corporate purposes, working capital and acquisition of theaters, according to a company announcement.
“SMI has been actively expanding its number of theaters and related business in recent years,” Cheng Chi Chung, the company’s chief executive officer, said in the press release.
“The proposed bonds issue and proposed notes issue will strength our financial position and provide working capital to the group to meet any future needs for potential investments or future business developments.”
SMI, formerly SMI Corp. Ltd., is a Hong Kong-based investment holding company mainly engaged in the movie theater business.
| Issuer: | SMI Holdings Group Ltd.
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| Issue: | Notes
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| Announcement date: | June 20
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|
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| Tranche 1
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| Amount: | HK$400 million
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| Maturity: | Two years with one-year extension option
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| Coupon: | 8.5%
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| Investor: | Cheer Hope Holdings Ltd., an indirect wholly owned subsidiary of CCB International (Holdings) Ltd.
|
|
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| Tranche 2
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| Amount: | $43.6 million
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| Maturity: | Two years
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| Coupon: | 8.5%
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| Investor: | Abundant Ally Ltd., an indirect wholly owned subsidiary of Huarong International Financial Holdings Ltd.
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