China Galaxy calls convertibles after share price triggers option

Chicago, Nov. 27 – China Galaxy Securities Co. Ltd.’s board of directors determined to exercise the early right of redemption on the company’s RMB 7.8 billion A share convertible corporate bonds, according to a notice.

All of the bonds will be redeemed at par plus interest, with full details pending and not yet released.

The bonds may continue to be traded in the secondary market or converted at the conversion price of RMB 9.70 per share within the prescribed time limit.

The company noted that in the event of compulsory redemption, holders of the bonds may face substantial investment losses.

The bonds became callable when the shares exceeded the 130% hurdle of RMB 9.70 per share for 15 consecutive trading days between Nov. 6 and Nov. 24, triggering the conditional redemption option.

China Galaxy Securities is a Beijing-based brokerage and investment bank.

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