By Kenneth Lim
Boston, July 18 - Sino-Forest Corp. priced $300 million of five-year convertible senior unsecured notes at the midpoint of talk to yield 5% with an initial conversion premium of 35%, sources close to the deal said.
The notes were offered at par. Price talk was for a coupon of 4.75% to 5.25% and an initial conversion premium of 32.5% to 37.5%.
Merrill Lynch and Credit Suisse were the underwriters for the deal, which was offered in the United States under Rule 144A and under Regulation S in international markets. There is an over-allotment option for an additional $45 million.
The convertibles are non-callable and may not be put.
There will be full takeover and dividend protection.
Sino-Forest, a Mississauga, Ont.-based commercial forestry operator in China, said it will use about $230 million of the proceeds as initial capital to acquire plantation forests in the Fujian Province. It will use about $15 million to lease land for planting jatropha trees, and any remaining proceeds will be used for working capital.
| Issuer: | Sino-Forest Corp.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunners: | Merrill Lynch and Credit Suisse
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | Aug. 1, 2013
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 35%
|
| Conversion price: | $20.29
|
| Conversion ratio: | 49.2974
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 4.75%-5.25%, up 32.5%-37.5%
|
| Pricing date: | July 17, after the close
|
| Settlement date: | July 23
|
| Distribution: | Rule 144A, Regulation S
|
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