China Yuhua greenshoe increases 0.9% convertibles to HK$2.09 billion

By Angela McDaniels

Tacoma, Wash., Dec. 30 – The bookrunner for China Yuhua Education Corp. Ltd.’s 0.9% five-year convertible bonds exercised HK$64 million of its over-allotment option, increasing the size of the issue to HK$2,088,000,000.

As previously reported, the company priced HK$2,024,000,000 of the convertibles on Dec. 3 at par with an initial conversion premium of 34% and a HK$324 million greenshoe.

BofA Securities is the global coordinator, bookrunner and dealer manager for the Regulation S offering.

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.

The listing of the convertibles on the Stock Exchange of Hong Kong Ltd. was expected to become effective Monday.

China Yuhua Education is a Zhengzhou, China-based provider of private education services.

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