Kingsoft greenshoe exercised, ups 3% convertibles to HK$1.36 billion

By Marisa Wong

Madison, Wis., July 23 - Kingsoft Corp. Ltd. completed the issue of HK$1,356,000,000 of 3% convertible bonds due 2018 on Tuesday, according to a company announcement. The total issue size includes HK$194 million from a fully exercised greenshoe.

Kingsoft priced on July 2 HK$1,162,000,000 of five-year convertible bonds at par to yield 3% with an initial conversion premium of 25%, as previously announced.

The Regulation S offering was made via a subscription agreement with bookrunners Morgan Stanley & Co. International plc, J.P. Morgan Securities plc and Macquarie Capital Securities Ltd.

The initial conversion price is HK$16.9363.

The bonds are non-callable for three years and then are provisionally callable if the shares are at least 130% of the conversion price. There is also an investor put on July 23, 2016.

Proceeds are earmarked primarily to repay existing short-term bank loans, for general corporate purposes and to supplement working capital.

The company expects to list the bonds on the Singapore stock exchange on Wednesday.

Beijing-based Kingsoft is an investment holding company for a business, including entertainment software and online games, information security software and other application software.

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