Lanzhou Zhuangyuan to sell RMB 400 million of six-year convertibles

By Angela McDaniels

Tacoma, Wash., Jan. 31 – Lanzhou Zhuangyuan Pasture Co., Ltd. plans to price up to RMB 400 million of six-year convertible bonds, according to a company news release.

The proposed issuance received board approval on Thursday and is subject to approval from shareholders and the China Securities Regulatory Commission.

The company plans to issue the bonds at par of RMB 100.

The interest rate is yet to be determined.

The bonds will be convertible into A shares beginning six months after issuance.

The bonds will be callable at par if the company’s closing share price is at least 130% of the conversion price during at least 15 trading days out of any 30 consecutive trading days. The company will have a clean-up call option if the outstanding amount of bonds falls to less than RMB 30 million.

The bonds will be putable at par during the last two years of the life of the bonds if the company’s closing share price is less than 70% of the conversion price for any 30 consecutive trading days.

Proceeds will be used for construction projects.

Lanzhou Zhuangyuan makes and sells dairy products and is based in Lanzhou, China.

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