A story in the Sept. 21 issue of the Prospect News Convertibles Daily misstated the issuer and yield of Hengdeli Holdings Ltd.'s five-year convertible bonds. The yield is 3.5%. A corrected version of the story follows:
New Issue: Hengdeli prices HK$2.5 billion five-year convertibles at 3.5%, up 23.5%
New York, Sept. 21 - Hengdeli Holdings Ltd. sold HK$2.5 billion of five-year convertibles with an initial conversion premium of about 23.5%, according to a company release.
J.P. Morgan Securities Ltd. and Standard Chartered Bank were the joint bookrunners and lead managers.
The 2.5% bonds have a redemption price at maturity of 105.413 and will yield 3.5%.
Holders will have a put option on Oct. 20, 2013, and the issuer may force conversion after Oct. 20, 2013, subject to a 130% hurdle.
The bonds are convertible into Hengdeli stock at HK$4.9524 per share.
Proceeds will be used for business expansion, including acquisitions and general corporate purposes.
Hengdeli is a Hong Kong-based watch retailer and wholesaler.
| Issuer: | Hengdeli Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Lead managers: | J.P. Morgan Securities Ltd. and Standard Chartered Bank (joint)
|
| Amount: | HK$2.5 billion
|
| Maturity: | Oct. 20, 2015
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Redemption price: | 105.413
|
| Yield: | 3.5%
|
| Conversion premium: | 23.5%
|
| Conversion price: | HK$4.9524
|
| Calls: | Forced conversion after Oct. 20, 2013, subject to 130% hurdle
|
| Put: | On Oct. 20, 2013
|
| Pricing date: | Sept. 20
|
| Settlement date: | Oct. 20
|
| Distribution: | Regulation S
|
| Stock symbol: | HKG:3389
|
| Stock reference price: | HK$4.01
|
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