By Abigail W. Adams
Portland, Me., July 7 – Luye Pharma Group Ltd. issued $180 million of five-year convertible notes on July 3 with the notes pricing at par to yield 6.25% with an initial conversion premium of 26.10% on June 27, according to a company circular and a market source.
Pricing came at the cheap end of talk for a coupon of 5.75% to 6.25% and an initial conversion premium of 26.10% to 31.27%, according to a market source.
UBS AG Hong Kong Branch was sole global coordinator and bookrunner for the Regulation S offering.
The notes are subject to a clean-up call or tax call.
They are putable at par on July 6, 2026 or upon a change of control or delisting event.
The notes are convertible into Luye Pharma’s common stock with the fixed exchange rate US$1 to HK$7.8295.
Shareholder LuYe Pharmaceutical Investment Co., Ltd. has entered into a stock lending agreement with UBS AG London Branch, which will borrow 182.1 million shares to help facilitate hedging activities.
Proceeds will be used to refinance existing debt and for research and development.
Luye Pharma is a Shanghai-based pharmaceutical company.
| Issuer: | Luye Pharma Group Ltd.
|
| Amount: | $180 million
|
| Issue: | Convertible bonds
|
| Maturity: | July 6, 2028
|
| Bookrunner: | UBS AG Hong Kong Branch
|
| Trustee: | Citicorp International Ltd.
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 26.10%
|
| Conversion price: | HK$4.88
|
| Exchange rate: | US$1 to HK$7.8295
|
| Call options: | Subject to a clean-up call or tax call
|
| Put options: | Putable at par on July 6, 2026 or upon a change of control or delisting event
|
| Pricing date: | June 27
|
| Settlement date: | July 3
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 5.75% to 6.25% and initial conversion premium of 26.10% to 31.27%
|
| Stock symbol: | HKG: 2186
|
| Stock price: | HK$3.87
|
| Market capitalization: | HK$2.79 billion
|
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