By Abigail W. Adams
Portland, Me., Sept. 10 – ESR Cayman Ltd. priced $350 million of five-year convertible notes on Wednesday at par with a coupon of 1.5% and an initial conversion premium of 27.5%, according to a company announcement.
Pricing came at the midpoint of talk for a coupon of 1.25% to 1.75% and an initial conversion premium of 25% to 30%, according to a market source.
Credit Suisse (Singapore) Ltd. and Morgan Stanley & Co. International plc were joint global coordinators and bookrunners for the Regulation S offering.
Deutsche Bank AG Hong Kong Branch was also a joint bookrunner.
The bonds are non-callable until Sept. 30, 2023 and then subject to a 130% hurdle.
They are putable on Sept. 30, 2023 and due to a relevant event.
The bonds will be listed for trade on the Singapore Exchange.
Net proceeds are expected to be $344.9 million.
Proceeds will be used to refinance existing debt, for potential acquisitions and investment opportunities and other for general corporate purposes.
ESR is a Hong Kong-based integrated logistics real estate platform focused on development, fund management and investment activities.
| Issuer: | ESR Cayman Ltd.
|
| Securities: | Convertible bonds
|
| Amount: | $350 million
|
| Maturity: | Sept. 30, 2025
|
| Bookrunners: | Credit Suisse (Singapore) Ltd., Morgan Stanley & Co. International plc and Deutsche Bank AG Hong Kong Branch
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 27.5%
|
| Conversion price: | HK$32.13
|
| Conversion rate: | 27.5%
|
| Call options: | Non-callable until Sept. 30, 2023 and then subject to a 130% hurdle
|
| Put options: | On Sept. 30, 2023 or for a relevant event
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 30
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 1.25% to 1.75% and initial conversion premium of 25% to 30%
|
| Stock symbol: | HK: 1821
|
| Stock price: | HK$25.20 at market close Sept. 9
|
| Market capitalization: | HK$73.127
|
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