By Kenneth Lim
Boston, May 14 - Hong Kong's Gome Electrical Appliances Holding Ltd. priced RMB 4.6 billion of seven-year zero-coupon convertible unsubordinated unsecured bonds to yield 1% with an initial conversion premium of 50%.
The convertibles were offered at par.
There is an over-allotment option for a further RMB 400 million.
Goldman Sachs was the bookrunner of the Regulation S offering.
There is a concurrent HK$1.463 billion offering of Gome's Hong Kong-listed common stock at HK$13.30 apiece.
The convertibles are non-callable for the first three years subject to a hurdle at 130% of the conversion price. The convertibles may be put in the third year.
The bonds have dividend and takeover protection.
Gome, a Hong Kong-based retailer of electrical appliances and consumer electronics, said it will use the proceeds of the convertible and stock offerings to buy new stores, establish regional distribution centers, upgrade its information technology system and fund general corporate purposes.
| Issuer: | Gome Electrical Appliances Holding Ltd.
|
| Issue: | Convertible unsubordinated unsecured bonds
|
| Bookrunner: | Goldman Sachs
|
| Amount: | RMB 4.6 billion
|
| Greenshoe: | RMB 400 million
|
| Maturity: | May 18, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 105.38%
|
| Yield: | 1%
|
| Conversion premium: | 50%
|
| Conversion price: | HK$19.95
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before May 18, 2010, thereafter callable subject to hurdle at 130% of conversion price
|
| Puts: | May 18, 2010
|
| Pricing date: | May 11
|
| Distribution: | Regulation S
|
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