By Rebecca Melvin
New York, Sept. 25 - Champion Path Holdings Ltd. priced HK$2 billion of 0% six-year convertibles, which will be guaranteed by SJM Holdings Ltd., to yield 2% with an initial conversion premium of 20% over the Sept. 24 closing price of SJM common shares, according to a news release.
The Regulation S deal was sold via Deutsche Bank AG Hong Kong Branch as lead manager and bookrunner.
The bonds, which were sold at par, will be convertible at HK$5.25, and assuming full conversion, they will be convertible into about 373.8 million shares, representing about 7.5% of existing issued share capital of the company.
Proceeds are expected to be used for capital expenditures related to the company's developments in Macau and for general corporate purposes.
Application is being made to list the bonds as selectively marketed securities on the Singapore Exchange Securities Trading Ltd.
The bonds will be non-callable until April 28, 2011 and provisionally callable thereafter if the closing price of the shares hits a 115% price hurdle for each of 20 consecutive trading days.
Holders can put the bonds back on Dec. 8, 2009.
The company will redeem each bond at 112.68% of its principal amount on Oct. 28, 2015.
SJM is one of six companies authorized to operate casino properties in Macau.
| Issuer: | Champion Path Holdings Ltd.
|
| Guarantor: | SJM Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | HK$2 billion
|
| Maturity: | Oct. 28, 2015
|
| Bookrunner: | Deutsche Bank AG Hong Kong Branch
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 20%
|
| Conversion price: | HK$5.25
|
| Calls: | Non-callable until April 28, 2011, provisionally callable thereafter at a 115% price hurdle
|
| Puts: | Putable after Dec. 8, 2009
|
| Pricing date: | Sept. 25
|
| Distribution: | Regulation S
|
| Stock reference price: | HK$4.46
|
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