By Abigail W. Adams
Portland, Me., Dec. 18 – Xiaomi Corp. priced $855 million in 0% convertible bonds due 2027 (Baa2) on Dec. 1 at 105.25 for a negative yield to maturity of 0.73%, a negative yield to worst of 1.021% and an initial conversion premium of 40.5%, according to a company announcement.
Pricing came in line with talk for a negative yield of 0.73% and cheaper than talk for an initial conversion premium of 42.5% to 52.5%, according to a market source.
Credit Suisse (Hong Kong) Ltd., Goldman Sachs (Asia) LLC, J.P. Morgan Securities plc and Morgan Stanley & Co. International plc were joint bookrunners for the Regulation S offering.
The bonds are non-callable until Dec. 17, 2025 and then subject to a 130% hurdle.
They are putable at par on Dec. 17, 2025 or upon a change-of-control or delisting event.
The bonds are convertible at a fixed exchange rate of HK$7.7529 to $1.
Proceeds will be used for working capital, for investments and for other general corporate purposes.
Xiaomi is a Beijing-based electronics company.
| Issuer: | Xiaomi Corp.
|
| Securities: | Convertible bonds
|
| Amount: | $855 million
|
| Maturity: | Dec. 17, 2027
|
| Bookrunners: | Credit Suisse (Hong Kong) Ltd., Goldman Sachs (Asia) LLC, J.P. Morgan Securities plc and Morgan Stanley & Co. International plc
|
| Coupon: | 0%
|
| Price: | 105.25
|
| Yield: | Negative 0.73%
|
| Conversion premium: | 40.5%
|
| Conversion price: | HK$36.74
|
| Call options: | Non-callable until Dec. 17, 2025 and then subject to a 130% hurdle
|
| Put options: | Putable at par on Dec. 17, 2025 or upon a change-of-control or delisting event
|
| Pricing date: | Dec. 1
|
| Rating: | Moody’s: Baa1
|
| Distribution: | Regulation S
|
| Talk: | 105.25 for a negative yield to maturity of 0.73%, up 42.5% to 52.5%
|
| Stock symbol: | HKG: 1810
|
| Stock price: | HK: 26.15 at market close Dec. 18
|
| Market capitalization: | HK$724.15 billion
|
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