Shunten fails to place HK$120 million 5% two-year convertibles

By Susanna Moon

Chicago, Jan. 11 – Shunten International Ltd. said it has failed to meet the conditions to the placing agreement for up to HK$120 million of 5% two-year convertible bonds.

Because the conditions have not been met as of Friday, the amended long stop date, the placing agreement has lapsed and no convertibles will be issued under those terms.

As a result, the company’s directors “will continue to evaluate alternative ways of raising funds in the capital markets” to meet is needs, according to a company update on Friday.

The company announced the placing agreement on Dec. 14 after the market close to issue up to HK$120 million of the convertibles with a coupon of 5% and an initial conversion premium of 17.6%.

Wealth Link Securities Ltd. was the placement agent for the best-efforts offering and was to secure no less than six placements.

The placement period was slated to terminate after 10 business days.

The conversion price of HK$0.30 represented an initial conversion premium of 17.6% from the last reported sales price of the stock, 16.3% over the five-day average and 16.1% over a 10-day average.

Proceeds were to be used to purchase 90% of the convertible bonds priced in 2017 with the remaining amount for general corporate purposes.

The placement was contingent upon at least 50% of the holders of the convertible bonds that priced in 2017 agreeing to amend the terms of the bonds to allow for the repurchase and at least 50% agreeing to sell the bonds to the company.

Shunten International is a Hong Kong-based holding company focused on health and beauty products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.