3SBio adjusts conversion price for 2025 bonds ahead of put exercise

By William Gullotti

Buffalo, N.Y., June 29 – 3SBio Inc. adjusted the conversion price of its outstanding €289 million 0% convertible bonds due 2025 and repurchased bonds from the series due to an exercised put option, according to a notice on Thursday.

The price adjustment is due to two cash dividend distributions by the company, specifically a 2021 final dividend of HK$0.20 per share and a 2022 final dividend of HK$0.10 per share.

Subsequently, the conversion price was adjusted to HK$12.563 per share from HK$12.7242, which was an interim adjustment from the HK$13.175 per share price prior to the dividend distributions.

The twofold price adjustment will become effective July 4.

Assuming full conversion of the existing bonds at the adjusted conversion price, prior to the company’s repurchase of put bonds, the maximum number of shares to be issued as a result of conversion increased to 198,279,153 shares from 191,494,580.

Of the €289 million outstanding convertibles, bondholders exercised their optional put rights to compel the company to repurchase an aggregate total of €287.6 million of the convertibles.

The repurchase date is June 29.

Following redemption and cancelation of the put bonds, €1.4 million of the convertibles will remain outstanding.

Assuming full conversion of the remaining bonds, the maximum number of shares issuable due to conversion will be 960,521 until the July 4 price adjustment, at which point the issuable shares will increase to 972,844.

3SBio is a Shenyang, China-based biotechnology company.

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