By Kenneth Lim
Boston, April 20 - Singapore's GuocoLand Ltd. on Thursday priced S$690 million of five-year zero-coupon convertible unsubordinated unsecured bonds in two tranches of S$345 million each. The A series yields 0.6% with an initial conversion premium of 25%, while the B series yields 1.9% with the same initial conversion premium.
The bonds were offered at par.
There is an over-allotment option for a further S$100 million.
JP Morgan is the bookrunner of the Regulation S offering.
Both series are non-callable. The A tranche may be put in the third year, but the B tranche has no puts.
Both tranches may be mandatorily converted after the second year at the option of the company, subject to a hurdle at 120% of the conversion price.
The conversion price may also be reset to a lower amount at any time, subject to a floor at 70% of the initial conversion price.
The convertibles have dividend and takeover protection.
There was a concurrent renounceable rights issue by the company of one rights share for every three existing shares, at a price of S$2.50 per rights share.
GuocoLand, a Singapore-based property development company, said the proceeds of the convertible and rights offerings will be used to fund working capital and acquisitions.
| Issuer: | GuocoLand Ltd.
|
| Issue: | Convertible unsubordinated unsecured bonds
|
| Bookrunner: | JP Morgan
|
| Total amount: | S$690 million
|
| Greenshoe: | S$100 million
|
| Pricing date: | April 19
|
| Settlement date: | May 7
|
| Distribution: | Regulation S
|
|
|
| A tranche
|
| Amount: | S$345 million
|
| Maturity: | May 7, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 103.04%
|
| Yield: | 0.6%
|
| Conversion premium: | 25%
|
| Conversion price: | S$6.216
|
| Conversion price reset: | May be reset lower from May 7, 2007 onwards subject to floor at 70% of initial conversion price
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | May 7, 2010
|
| Mandatory conversion: | From May 7, 2009 onwards subject to hurdle at 120% of conversion price
|
|
|
| B tranche
|
| Amount: | S$345 million
|
| Maturity: | May 7, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 109.92%
|
| Yield: | 1.9%
|
| Conversion premium: | 25%
|
| Conversion price: | S$6.216
|
| Conversion price reset: | May be reset lower from May 7, 2007 onwards subject to floor at 70% of initial conversion price
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Mandatory conversion: | From May 7, 2009 onwards subject to hurdle at 120% of conversion price
|
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