By Abigail W. Adams
Portland, Me., Dec. 5 – China Yuhua Education Corp. Ltd. priced HK$2,024,000,000 billion five-year convertible bonds on Tuesday at par with a coupon of 0.9% and an initial conversion premium of 34%, according to a company news release.
BofA Securities is the global coordinator, bookrunner and dealer manager for the Regulation S offering, which carries a greenshoe of HK$324 million.
The reference share price will be determined on Dec. 10 and will be the higher of either HK$5.16, the closing price on Dec. 3, or the average volume weighted share price on the five consecutive trading days between Dec. 4 and Dec. 10.
The bonds are callable on or after March 1, 2023 subject to a 130% hurdle or at any time due to a tax event.
The bonds are putable upon a change of control.
In connection with the offering, GuangYu Investment, a controlling shareholder, entered into a stock borrowing and lending agreement with Merrill Lynch International for 304 million shares.
Proceeds will be used for acquisitions and general corporate purposes.
China Yuhua Education Corp. is a Zhengzhou, China-based provider of private education services.
| Issuer: | China Yuhua Education Corp. Ltd.
|
| Securities: | Convertible bonds
|
| Amount: | HK$2,024,000,000
|
| Greenshoe: | HK$324 million
|
| Maturity: | Dec. 27, 2024
|
| Bookrunner: | BofA Securities
|
| Coupon: | 0.9%
|
| Price: | Par
|
| Yield: | 0.9%
|
| Conversion premium: | 34%
|
| Conversion price: | To be determined on Dec. 10
|
| Call options: | On or after March 1, 2023 subject to a 130% hurdle
|
| Put options: | Upon a change of control
|
| Pricing date: | Dec. 3
|
| Settlement date: | Dec. 27
|
| Distribution: | Regulation S
|
| Stock symbol: | HKG: 6169
|
| Stock price: | The higher of HK$5.16, the closing price on Dec. 3, or the VWAP between Dec. 4 and Dec. 10
|
| Market capitalization: | HK$17.69 billion
|
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