By Abigail W. Adams
Portland, Me., June 9 – Pharmaron Beijing Co. Ltd. price a two-tranche dual-currency offering of convertible bonds on Tuesday, according to a company news release.
The deal consisted of a $300 million tranche of 0% convertible bonds due 2026 and RMB 1.916 billion CNH-linked, U.S. dollar-settled 0% convertible bonds due 2026.
The dollar-denominated tranche priced at par with an initial conversion premium of 41.27%.
Talk was for an issue, put and maturity price of par and an initial conversion price of 37.5% to 47.5%, according to a market source.
The renminbi-denominated tranche priced at par with a put price of 104.59, a redemption price of 107.76 and an initial conversion premium of 29.3%.
The tranche was talked with an issue price of par, a put price of 103.81 to 105.37 and a maturity redemption price of 106.43 to 109.1 for a yield of 1.25% to 1.75% and an initial conversion premium of 30% to 40%.
Goldman Sachs (Asia) LLC and CLSA Ltd. were joint global coordinators and bookrunners for the Regulation S offering.
J.P. Morgan Securities plc is also a joint bookrunner.
Both tranches are putable on June 18, 2024 or upon a change-of-control or delisting event.
The dollar-denominated tranche is non-callable until June 18, 2024 and then subject to a 130% hurdle.
The renminibi-denominated tranche is non-callable except upon a tax event or if 10% or less of the principal is outstanding.
The renminbi-denominated bonds will be settled in U.S. dollars according to the U.S. dollar/yuan (CNH) spot rate two days before payment is due.
Net proceeds are expected to be $587.5 million.
Proceeds will be used to expand the company’s manufacturing and laboratory services facilities, for research and development and for general corporate purposes.
Pharmaron is a Beijing-based research and development service provider for the life sciences industry.
| Issuer: | Pharmaron Beijing Co. Ltd.
|
| Securities: | Convertible bonds
|
| Bookrunners: | Goldman Sachs (Asia) LLC, CLSA Ltd. and J.P. Morgan Securities plc
|
| Pricing date: | June 8
|
| Settlement date: | June 18
|
| Distribution: | Regulation S
|
| Stock symbol: | HK: 3759
|
| Market capitalization: | HK$169.45 billion
|
|
|
| Dollar tranche
|
| Amount: | $300 million
|
| Maturity: | June 18, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 41.27%
|
| Conversion price: | HK$250.75
|
| Call options: | Non-callable until June 18, 2024 and then subject to a 130% hurdle
|
| Put options: | Putable on June 18, 2024 or upon a change-of-control or delisting event
|
| Talk: | Issue, put and maturity price of par and an initial conversion price of 37.5% to 47.5%
|
|
|
| Renminbi tranche
|
| Amount: | RMB 1.916 billion
|
| Maturity: | June 18, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 107.76
|
| Put price: | 104.59
|
| Conversion premium: | 29.3%
|
| Conversion price: | HK$229.50
|
| Call options: | None
|
| Put options: | Putable on June 18, 2024 or upon a change-of-control or delisting event
|
| Talk: | Issue price of par, a put price of 103.81 to 105.37 and a maturity redemption price of 106.43 to 109.1 for a yield of 1.25% to 1.75% and an initial conversion premium of 30% to 40%
|
|
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