A story in the Sept. 21 issue of the Prospect News Convertibles Daily misstated the yield of Intime Department Store (Group) Co. Ltd.'s three-year convertible bonds. The yield is 4%. A corrected version of the story follows:
New Issue: Intime prices HK$1.55 billion three-year convertibles at 4%, up 27.98%
New York, Sept. 21 - Intime Department Store (Group) Co. Ltd. announced the issue of HK$1.55 billion of three-year convertibles. There is also a HK$388 million greenshoe.
The 1.75% bonds priced with an initial conversion premium of about 27.98%, according to a company release.
Factoring in a redemption price of 107.097, the notes will yield 4%.
Merrill Lynch Far East Ltd., UBS AG, Hong Kong Branch and Morgan Stanley & Co. International plc are the joint bookrunners and lead managers.
The bonds are convertible into Intime stock at HK$13.31 per share. They may be redeemed in whole at any time upon notice and may be converted by the company from Dec. 7, 2010 onwards.
In addition, Intime International entered into a stock lending arrangement with an affiliate of Merrill Lynch Far East and an affiliate of UBS to lend up to 37.5 million shares to each borrower. The 75 million shares make up 51.43% of the conversion shares into which the convertible bonds may be converted using the initial conversion price.
Proceeds from the convertibles will be used to fund future expansions, general corporate development and repayment of existing debt obligations.
The investment holding company is focused on department stores in China.
| Issuer: | Intime Department Store (Group) Co. Ltd.
|
| Issue: | Convertible bonds
|
| Joint lead managers: | Merrill Lynch Far East Ltd., UBS AG, Hong Kong Branch and Morgan Stanley & Co. International plc (co-leads)
|
| Amount: | HK$1,553,000,000
|
| Greenshoe: | HK$388 million
|
| Maturity: | Oct. 27, 2013
|
| Coupon: | 1.75%
|
| Price: | Par
|
| Redemption price | 107.097
|
| Yield: | 4%
|
| Conversion premium: | 27.98%
|
| Conversion price: | HK$13.31
|
| Calls: | At any time upon 30 days' notice; conversion at any time on or after Dec. 7, 2010
|
| Pricing date: | Sept. 20
|
| Settlement date: | Oct. 27
|
| Distribution: | Regulation S
|
| Stock symbol: | HKG:1833
|
| Stock reference price: | HK$10.46
|
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