By Abigail W. Adams
Portland, Me., April 20 – Meituan (Baa3/BBB-/BBB) priced $2,983,600,000 of convertible bonds on Monday in six- and seven-year tranches, according to a company news release.
The deal consists of a 1,483,600,000 tranche of 0% convertible notes due 2027 that priced at 101.1 to yield negative 0.182% and an initial conversion premium of 49.1%.
Price talk was for 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 premium of 55% to 60%, according to a market source.
The deal also included a $1.5 billion tranche of 0% convertible notes due 2028 that priced at par to yield 0.255% with an initial conversion premium 49.1%.
The 0% convertible notes due 2028 will be redeemed at maturity at 101.8.
Price talk for the 2028 notes was for 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 premium of 55% to 60%.
Price talk for the redemption price of the 2028 convertible notes at maturity was 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 2027 bonds are putable on April 27, 2025 at 100.37.
The 2028 bonds are putable on April 27, 2026 at 101.28.
The 2027 bonds were talked with a put price of 100.37 to 101.38, and the 2028 bonds were talked with 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 placed 187 million class B shares at a price of HK$273.80. Price talk was for an offering price of HK$265 to HK$274.
In addition, Tencent Holdings Ltd. subscribed for an additional 11,352,600 shares or HK$3.3 billion 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.
| Issuer: | Meituan
|
| Securities: | Convertible bonds
|
| Bookrunners: | Goldman Sachs (Asia) LLC and Merrill Lynch (Asia Pacific) Ltd.
|
| Pricing date: | April 19
|
| Settlement date: | April 27
|
| Rating: | Moody’s: Baa3
|
| Distribution: | Regulation S
|
| Stock symbol: | HKG: 3690
|
| Stock reference price: | $273.80 in concurrent offering
|
| Market capitalization: | HK$1.73 trillion
|
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| 2027 notes
|
| Amount: | $1,483,600,000
|
| Maturity: | 2027
|
| Coupon: | 0%
|
| Price: | 101.1
|
| Yield: | Negative 0.182%
|
| Conversion premium: | 49.1%
|
| Conversion price: | HK$431.24
|
| Call options: | None
|
| Put options: | Putable on April 27, 2025 at 100.37
|
| Talk: | Fixed coupon of 0%, an issue price of 101.1 to 104.2 to yield negative 0.182% to negative 0.685%, an initial conversion premium of 55% to 60%; and a put price of 100.37 to 101.38
|
|
|
| 2028 notes
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| Amount: | $1.5 billion
|
| Maturity: | 2028
|
| Coupon: | 0%
|
| Price: | Par
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| Redemption price: | 101.8
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| Yield: | 0.255%
|
| Conversion premium: | 49.1%
|
| Conversion price: | HK$431.24
|
| Call options: | None
|
| Put options: | Putable on April 27, 2026 at 101.28
|
| Talk: | Fixed coupon of 0%, an issue price of par to 101.8 to yield 0.255% to negative 0.255%, an initial conversion premium of 55% to 60%; redemption price of par to 101.8; and a put price of 101.28 to 100.58
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