Hansoh Pharmaceutical talks $500 million five-year convertibles to yield 0%, up 42.5%-52.5%

By Abigail W. Adams

Portland, Me., Jan. 7 – Hansoh Pharmaceutical Group Co. Ltd. plans to price $500 million of five-year convertible notes at par with a fixed coupon of 0% and an initial conversion premium of 42.5% to 52.5%, according to a market source.

Citigroup Global Markets Inc. is the bookrunner for the Regulation S offering.

The bonds are non-callable for three years and then subject to a 125% hurdle.

They are putable on Jan. 22, 2024 or upon a change-of-control or delisting event.

The bonds are convertible into shares that trade on the Hong Kong stock exchange at a fixed exchange rate of HK$7.7529 to US$1.00.

Proceeds will be used for research and development, construction of manufacturing facilities and general corporate purposes.

Hansoh Pharmaceutical Group is a Hong Kong-based pharmaceutical company.

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