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China’s Meituan to price $3 billion 0% convertible bonds in six- and seven-year tranches
By Abigail W. Adams
Portland, Me., April 19 – Meituan (Baa3/BBB-/BBB) plans to price $3 billion of convertible bonds on Monday in six- and seven-year tranches, according to a market source.
The six-year convertible notes are being talked with a fixed coupon of 0%, an issue price of 101.1 to 104.2 to yield negative 0.182% to negative 0.685%, and an initial conversion price of 55% to 60%.
The seven-year convertible notes are being talked with a fixed coupon of 0%, an issue price of par to 101.8 to yield 0.255% to negative 0.255%, and an initial conversion price of 55% to 60%.
Price talk for the redemption price of the seven-year convertible notes at maturity is par to 101.8.
Goldman Sachs (Asia) LLC and Merrill Lynch (Asia Pacific) Ltd. are joint global coordinators and bookrunners for the Regulation S offering.
The bonds are non-callable except for a tax-event.
The six-year bonds are putable on April 27, 2025 with talk for a put price of 100.37 to 101.38.
The seven-year bonds are putable on April 27, 2026 with talk for a put price of 101.28 to 100.58.
The bonds are also putable upon a change-of-control or delisting event.
They will be convertible based on a fixed exchange rate of $1 to HK$7.7709.
Concurrently, the company plans to price 187 million class B shares at a price of HK$265 to HK$274.
In addition, Tencent Holdings Ltd. plans to subscribe for an additional $400 million of shares at the subscription price.
Proceeds will be used for technology innovations, including research and development of autonomous delivery vehicles and drone delivery.
Meituan is a Beijing-based e-commerce platform with its flagship service food ordering and delivery.
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