New Focus Auto Tech gets OK to redeem convertible bonds due 2015

By Toni Weeks

San Luis Obispo, Calif., July 17 - New Focus Auto Tech Holdings Ltd. received approval from the Stock Exchange of Hong Kong Ltd. to amend the terms of its existing convertible bonds, according to a company notice.

The terms have been amended so that, among other things, the company may redeem its existing convertible bonds due 2015 in full for an aggregate redemption amount of $40 million, and, if the convertibles are redeemed, the company is no longer subject to the 64% fixed payment it would need to pay at maturity if it does not achieve certain growth in earnings per share from 2011 to 2014.

The company said that the old terms for the convertibles did not provide for redemption prior to maturity, other than at the request of holders.

Shanghai-based New Focus is an investment holding company that manufactures and sells automotive lighting and electronic power products.

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