By Rebecca Melvin
New York, Sept. 10 - Shanda Interactive Entertainment Ltd. priced an upsized $155 million of three-year convertible senior notes after the close Tuesday at par to yield 2% with an initial conversion premium of 25.31%, according to a news release.
There is an over-allotment option for $20 million of notes.
Initially, the size of the Rule 144A deal was expected to be $130 million of notes.
Sold via bookrunner Goldman Sachs & Co., the notes will be convertible for a combination of cash and shares, which may be in the form of the company's American Depositary Shares at an initial conversion rate of 28.5714 shares per bond.
Holders of the notes may require the company to repurchase all or a portion of the notes upon certain fundamental changes.
Proceeds from the notes, together with cash in hand, will be used to buy back the company's $175 million of American Depositary Shares under an accelerated share repurchase program.
The company separately announced that its directors have approved the buyback of $200 million of stock.
Shanda is a Shanghai-based interactive entertainment media company.
| Issuer: | Shanda Interactive Entertainment Ltd.
|
| Issue: | Convertible senior notes
|
| Amount: | $155 million
|
| Greenshoe: | $20 million
|
| Maturity: | 2011
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 25.31%
|
| Conversion ratio: | 28.5714
|
| Conversion price: | $35
|
| Call: | Non-callable for life
|
| Puts: | No puts, except a change-of-control put
|
| Net share settlement: | Yes
|
| Pricing date: | Sept. 9, after the close
|
| Settlement date: | Sept. 16
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: SNDA
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
