New York, Feb. 12 - Shangri-La Asia Ltd. priced $200 million of five-year zero-coupon convertible bonds at par with a premium redemption to yield 2.75%.
The initial conversion premium was 15.6% above the company's closing stock price on the pricing date of Feb. 9 or 25% above the price for a simultaneous stock sale.
Shangri-La, a Hong Kong luxury hotel company, will use proceeds from the convertibles and a simultaneous HK$700 million stock offering to finance development of new hotels, primarily in China, and for general corporate purposes.
The convertibles were sold under Regulation S. There was no public offering in Hong Kong.
Terms of the deal are:
| Issuer: | Shangri-La Finance Ltd., subsidiary of Shangri-La Asia Ltd.
|
| Issue: | Convertible bonds
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| Amount: | $200 million
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| Maturity: | 5 years
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| Coupon: | 0%
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| Price: | Par
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| Redemption price: | 114.633
|
| Yield: | 2.75%
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| Conversion premium: | 15.6% over HK$8.00 closing price on Feb. 9, 25% over HK$7.40 price for stock sale
|
| Conversion price: | HK$9.25 (in cash or stock at Shangri-La's option using $1 = HK$7.80 exchange rate)
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| Call: | March 15, 2007 onwards subject to 120% hurdle
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| Lead manager: | J.P. Morgan Securities Ltd.
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| Pricing date: | Feb. 9
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| Settlement date: | March 15
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| Distribution: | Regulation S
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