New York, Dec. 8 - Galaxy Entertainment Group Ltd. priced a $240 million placement of convertible notes to yield 0% with an 11.43% initial conversion premium.
Merrill Lynch Far East Ltd. and JPMorgan Securities Ltd. are joint placement agents. Merrill will place $25 million, JPMorgan will place $55 million and the remainder will be sold to four institutional investors.
There is a conversion price reset after two years with a floor of an 11.43% discount to the closing stock price on Dec. 1, when trading was halted ahead of the sale.
The initial conversion price is at an 11.43% premium to that level and a 20% premium to the three-month average.
Galaxy said 85% of the proceeds will be used to help fund the expansion of its Cotai Mega Resort while the remainder will be used for general corporate purposes.
Galaxy is a Hong Kong-based operator of casinos, hotels and entertainment facilities in Macau.
| Issuer: | Galaxy Entertainment Group Ltd.
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| Issue: | Convertible notes
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| Amount: | $240 million
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| Maturity: | Dec. 14, 2011
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| Coupon: | 0%
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| Price: | Par
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| Yield: | 0%
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| Call: | Dec. 14, 2007 onwards at par subject to 130% hurdle for first third, 145% hurdle for second third and 160% hurdle for remainder
|
| Initial conversion price: | HK$9.36
|
| Initial conversion premium: | 11.43%
|
| Placement agents: | Merrill Lynch Far East Ltd., JPMorgan Securities Ltd.
|
| Pricing date: | Dec. 5
|
| Settlement: | Dec. 14
|
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