By Abigail W. Adams
Portland, Me., Jan. 9 – China Yuhua Education Corp. Ltd. priced HK$940 million of one-year convertible bonds after the market close on Wednesday at par with a coupon of 3% and an initial conversion premium of 7.96%, according to a company news release.
BofA Merrill Lynch (Asia Pacific) Ltd. is global coordinator and bookrunner for the Regulation S offering.
The bonds are freely callable. They are putable upon the occurrence of certain events.
In connection with the offering, Guang Yu Investment, a substantial shareholder, entered into an agreement to loan Merrill Lynch 304 million shares in accordance with the terms of the stock borrowing and lending agreement.
Net proceeds are expected to be HK$921 million. Proceeds will be used to finance potential acquisitions.
China Yuhua Education Corp. is a Zhengzhua, China-based provider of non-vocational educational services in the People’s Republic of China.
| Issuer: | China Yuhua Education Corp. Ltd.
|
| Securities: | Convertible bonds
|
| Amount: | HK$940 million
|
| Maturity: | Jan. 16, 2020
|
| Bookrunner: | BofA Merrill Lynch (Asia Pacific) Ltd.
|
| Coupon: | 3%
|
| Price: | Par
|
| Conversion premium: | 7.96%
|
| Conversion price: | HK$3.336
|
| Conversion rate: | 599,520.3837 per HK$2 million principal amount
|
| Call options: | Freely callable
|
| Put options: | Upon the occurrence of certain events
|
| Pricing date: | Jan. 9
|
| Distribution: | Regulation S
|
| Stock symbol: | HK: 6169
|
| Stock price: | HK$3.09 at the market close Jan. 9
|
| Market capitalization: | HK$10.09 billion
|
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