By William Gullotti
Buffalo, N.Y., Dec. 13 – Link CB Ltd., an indirect wholly owned subsidiary of Link Real Estate Investment Trust, priced HK$3.3 billion of 4.5% guaranteed convertible bonds due 2027 (A2) at par with a 16.5% initial conversion premium, according to a listing notice with an appended offering circular on Tuesday.
Link Holdings Ltd., Link Properties Ltd. and HSBC Institutional Trust Services (Asia) Ltd., in its capacity as trustee, and with recourse limited to the assets of Link REIT as managed by Link Asset Management Ltd., will guarantee the notes.
The bonds are callable at the issuer’s option, starting Dec. 26, 2025, and conditioned upon a 130% hurdle. They also may be redeemed early at any time at par plus interest for taxation reasons or a 10% minimum outstanding amount.
Bondholders may put the bonds at par plus interest on Dec. 12, 2025. Bondholders will also be able to exercise put rights at par for a change of control, delisting or suspension.
The convertibles have an initial conversion price of HK$61.92. The conversion price is subject to adjustment for multiple reasons including consolidation, subdivision, redesignation, reclassification, capitalization of profits/reserves, extraordinary distributions, multiple rights issues involving units at less than 95% of current market price and change of control.
HSBC is the global coordinator and lead manager for the offering.
Proceeds will be used to refinance existing obligations and for general corporate purposes.
The listing for the Regulation S bonds is expected Dec. 13 on the Stock Exchange of Hong Kong Ltd.
Link is a Hong Kong-based real estate investment trust that invests in retail and parking facilities. The parent is Link Asset Management Co., Ltd.
| Issuer: | Link CB Ltd.
|
| Guarantors: | Link Real Estate Investment Trust, Link Holdings Ltd., Link Properties Ltd. and HSBC Institutional Trust Services (Asia) Ltd.
|
| Amount: | HK$3.3 billion
|
| Issue: | Guaranteed convertible bonds
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| Maturity: | Dec. 12, 2027
|
| Bookrunner: | HSBC
|
| Trustee: | Bank of New York Mellon, London Branch
|
| Counsel to issuer: | Baker & McKenzie (Hong Kong), Maples and Calder (Hong Kong) LLP (BVI)
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 16.5%
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| Conversion price: | HK$61.92
|
| Calls: | Non-callable until Dec. 26, 2025 and then subject to a 130% hurdle; at any time at par for taxation reasons or 10% minimum outstanding amount
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| Puts: | At the holder’s option on Dec. 12, 2025 at par; at par for a change of control, delisting or suspension
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| Pricing date: | Dec. 7
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| Issue date: | Dec. 12
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| Listing date: | Dec. 13
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| Rating: | Moody’s: A2
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| Distribution: | Regulation S
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| ISIN: | XS2560662541
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