By Kenneth Lim
Boston, April 23 - Hong Kong's SPG Land (Holdings) Ltd. priced RMB 1.158 billion of five-year zero-coupon convertible unsubordinated unsecured bonds on Friday to yield 2.25% with an initial conversion premium of 35.5%.
The convertibles were offered at par.
There is an over-allotment option for a further RMB 232 million.
DBS Bank and Morgan Stanley are the lead managers of the Regulation S offering.
The bonds are convertible into SPG's Hong Kong-listed common stock at an initial conversion price of HK$8.1165 per share.
The convertibles are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price. The bonds may be put in the third year.
The bonds have dividend and takeover protection.
SPG, a residential and hotel property developer, said the proceeds of the deal will be used to acquire projects in China and for general purposes.
| Issuer: | SPG Land (Holdings) Ltd.
|
| Issue: | Convertible unsubordinated unsecured bonds
|
| Bookrunners: | DBS Bank and Morgan Stanley
|
| Amount: | RMB 1.158 billion
|
| Greenshoe: | RMB 232 million
|
| Maturity: | April 27, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 111.837%
|
| Yield: | 2.25%
|
| Conversion premium: | 35.5%
|
| Conversion price: | HK$8.1165
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before April 27, 2010, thereafter callable subject to hurdle at 130% of conversion price
|
| Puts: | April 27, 2010
|
| Pricing date: | April 20
|
| Settlement date: | April 27
|
| Distribution: | Regulation S
|
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