By Angela McDaniels
Tacoma, Wash., Oct. 18 - Goldin Properties Holdings Ltd. plans to issue HK$4.89 billion to HK$5.08 billion of 8% three-year convertible bonds through a rights offering, according to a company news release.
The company will offer to its shareholders two convertibles for every three shares held.
Each convertible will have a face value of HK$6.00 and will be sold at par.
The conversion price is initially HK$6.00. It will be adjusted every six months to the average volume-weighted average price of the company's shares for the 30 trading days ending immediately prior to the reset date, subject to a floor of HK$4.80.
The initial conversion price is a 28.2% premium to the closing share price of HK$4.68 on Friday. The floor is the same as the company's average closing share price for the 10 trading days ended Friday.
Goldin Equities Ltd. is the underwriter.
The company said it will apply to list the convertibles for trading on the Stock Exchange of Hong Kong.
The subscription period for the convertibles will run from Dec. 28 to Jan. 17. The settlement date is expected to be Jan. 21.
The offering is subject to shareholder approval. Shareholders will vote at an extraordinary general meeting on Dec. 23.
Up to HK$2.33 billion of the proceeds will be set off against a $300 million loan owed to Goldin Group (Investment) Ltd., which is owned by Goldin Properties chairman Pan Sutong. The remainder will be used to finance property development and investments and/or other property-related business.
The company is a property developer based in Hong Kong.
| Issuer: | Goldin Properties Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | HK$4,894,200,000 to HK$5,077,000,000
|
| Maturity: | Three years
|
| Underwriter: | Goldin Equities Ltd.
|
| Coupon: | 8%
|
| Price: | Par of HK$6.00
|
| Conversion price: | HK$6.00; adjusted every six months to greater of average volume-weighted average share price for previous 30 trading days and HK$4.68
|
| Pricing date: | Oct. 15
|
| Settlement date: | Jan. 21
|
| Stock symbol: | Hong Kong: 283
|
| Stock price: | HK$4.68 at close Oct. 15
|
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