By Rebecca Melvin
New York, June 4 - Sino-Environment Technology Group Ltd. priced S$149 million of 4% five-year convertible bonds in a bought deal via Morgan Stanley Asia (Singapore) Pte. to yield 6.5% with an initial conversion premium of 20%, according to a news release.
Concurrent with the Regulation S deal, Sino-Environment entered into an equity swap of ordinary shares for about S$67 million with Morgan Stanley & Co. International plc to facilitate bond investor hedges.
The financing was similar to other Asian deals this year, including Country Garden and China High Speed in Hong Kong.
The bonds are non-callable for three years and then are provisionally callable subject to a 130% price trigger. There is a put after two years, in 2010.
Net proceeds, excluding the equity swap, will total about S$76 million and will be used to fund the purchase of equipment at the company's de-nitrogenation business, for working capital and for potential merger and acquisition activity.
Based in Singapore, Sino-Environment is a waste management company that makes equipment to treat industrial waste.
| Issuer: | Sino-Environment Technology Group Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | S$149 million
|
| Greenshoe: | None
|
| Maturity: | July 8, 2013
|
| Bookrunner: | Morgan Stanley Asia (Singapore) Pte.
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion price: | S$2.19
|
| Conversion premium: | 20% over weighted average stock price
|
| Call: | Non-callable until 2011, then provisionally callable at 130% hurdle
|
| Puts: | 2010 plus a change-of-control put
|
| Pricing date: | June 3
|
| Concurrent deal: | Equity swap to facilitate investor hedges
|
| Distribution: | Regulation S
|
| Listing: | SGX-ST
|
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