Country Garden lowers conversion price on Smart Insight convertibles

By William Gullotti

Buffalo, N.Y., Sept. 13 – Country Garden Holdings. Co, Ltd. reduced the conversion price for its HK$7.83 billion 4.5% secured guaranteed convertible bonds due 2023 to HK$10.47 per share from HK$10.80 per share, according to a notice Monday.

In addition, the company adjusted the strike price of the bond’s written call options to HK$14.89 per written call option from HK$15.36 and the strike price of the purchased call options to HK$10.47 per purchased call option from HK$10.80.

All adjustments will take effect on Sept. 14.

The reductions are being made due to a dividend of RMB 20.98 cents per share that is being paid on Nov. 26 to all holders of record on Sept. 20, according to the notice.

The bonds were originally issued by Smart Insight International Ltd. and are guaranteed by Country Garden.

Country Garden is a Foshan, China, real estate developer.

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