New York, June 2 – China Merchants Land Ltd. priced a $290 million of five-year convertible bonds to yield 0.5% with a 25% initial conversion premium, according to a company announcement.
The deal came at the rich end of talk which had indicated a coupon of 0.5% to 1% and an initial conversion premium of 20% to 25%.
China Merchants announced the offering at $250 million with a $40 million greenshoe. As priced, the size is $290 million with no greenshoe.
BofA Merrill Lynch, CCB International, China Merchants Securities (HK) and DBS Bank Ltd. were joint bookrunners for the Regulation S transaction.
The bonds are credit enhanced by a standby letter of credit under which China Construction Bank Corp., Hong Kong branch, can make a claim under the letter of credit on behalf of the bondholders for the first three years.
The bonds are non-callable for 18 months and then they are provisionally callable if shares exceed 130% of the conversion price for 20 out of 30 consecutive trading days. The bonds are putable at year three.
The bonds are expected to close on June 23 and to be listed on the Hong Kong Stock Exchange.
Proceeds will be used for general corporate purposes.
Hong-Kong-based China Merchants is a real estate development company focused on properties in the People’s Republic of China.
| Issuer: | Cosmos Boom Investment Ltd. (China Merchants Land Ltd.)
|
| Issue: | Credit-enhanced convertible bonds
|
| Amount: | $290 million
|
| Maturity: | June 23, 2020
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Initial conversion premium: | 25%
|
| Conversion price: | HK$2.9875 (fixed rate of HK$7.7559 = $1)
|
| Call: | From Dec. 23, 2016 in whole at par subject to 130% hurdle
|
| Put: | June 23, 2018
|
| Pricing date: | June 2
|
| Settlement: | June 23
|
| Bookrunners: | BofA Merrill Lynch, CCB International, China Merchants Securities (HK) and DBS Bank Ltd.
|
| Distribution: | Regulation S
|
| Stock price: | HK$2.39 at close on June 2
|
| Market capitalization: | HK$11.7 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
