Chicago, July 17 – Hong Kong Resources Holdings Co. Ltd. priced HK$121.95 million of 4% three-year convertible bonds, according to a company notice.
The notes are putable from the bond issue date through seven days prior to the maturity date with seven days’ notice.
Based on the conversion price of HK$0.15, a maximum number of 813 million conversion shares will be allotted and issued upon exercise in full of the conversion right of the bonds, representing 64.18% of the existing share capital of the company or approximately 39.09% of the issued share capital of the company upon full conversion of the bonds.
The company intends to use proceeds in the following way:
• HK$57 million will be used for the repayment of convertible bonds due June 6, which have not been repaid;
• HK$32 million to be used for the repayment of borrowings;
• HK$25 million to be used for repaying debt; and
• HK$7.6 million will be used for general working capital.
Hong Kong Resources engages in trademark licensing and retailing of gold and jewelry products in Hong Kong, Macau and China and sells and processes gold and jewelry products in China.
| Issuer: | Hong Kong Resources Holdings Co. Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | HK$121.95 million
|
| Maturity: | 2022
|
| Coupon: | 4%
|
| Conversion premium: | 2.74%
|
| Conversion price: | HK$0.15
|
| Put option: | At any time
|
| Agreement date: | May 29
|
| Announcement date: | July 17
|
| Stock symbol: | Hong Kong: 2882
|
| Stock price: | HK$0.146 at close on May 29
|
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