Mascotte extends maturity of convertibles, cuts coupon of one series

By Marisa Wong

Madison, Wis., July 7 – Mascotte Holdings Ltd. said it amended its 5% convertible bonds due July 2014 and its 7.5% convertible bonds due December 2014.

The company and bondholders agreed to extend the maturity date of the 5% convertible bonds to Dec. 31, 2015 and the maturity date of the 7.5% convertible bonds to Dec. 31, 2015.

The coupon of the 7.5% convertibles was also lowered to 5%, and the interest payment dates were shifted to quarterly beginning on Jan. 2 instead of Jan. 4.

The interest payment dates for the 5% convertibles originally due July 2014 were changed from semiannually beginning Jan. 14 to quarterly beginning Jan. 2 of each year.

The changes took effect on June 16.

Macotte said that given its current financial situation, if the extension was not obtained it would have to convert all of the outstanding bonds into stock, which would dilute existing shareholders’ interests.

The company said it amended the interest payment dates for both series of bonds for consistency and administrative convenience.

The company issued HK$1.45 billion of the 5% convertibles in July 2011 and HK$1.75 billion of the 7.5% convertibles in January 2012. As of July 3, the principal amounts outstanding were HK$700 million and HK$145 million, respectively.

Based in Hong Kong, Mascotte manufactures solar-grade polycrystalline silicon.

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