By Kenneth Lim
Boston, May 29 - Wing Shing International Holdings Ltd. priced HK$200 million of five-year zero-coupon convertible unsubordinated unsecured bonds to yield 5.5% with an initial conversion premium of 12.47%.
The convertibles were offered at par.
Standard Chartered Bank was the bookrunner of the Regulation S offering.
The conversion price may be reset annually for the first four years if the common stock is trading below the conversion price in effect, subject to a floor at 85% of the prevailing conversion price. The conversion price may also not be reset to below HK$0.5511, which represents 70% of the initial conversion price of HK$0.7873.
The convertibles may be mandatorily converted at the option of the company after the first three years subject to a hurdle at 130% of the conversion price. They may be put in years 1.5 and three.
Wing Shing, a Hong Kong-based paint and chemicals manufacturer and trader, said it will use the proceeds of the deal to fund an oil exploitation project in China's Heilongjiang province.
| Issuer: | Wing Shing International Holdings Ltd.
|
| Issue: | Convertible unsubordinated unsecured bonds
|
| Bookrunner: | Standard Chartered Bank
|
| Amount: | HK$200 million
|
| Maturity: | July 3, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 128.33%
|
| Yield: | 5.5%
|
| Conversion premium: | 12.47%
|
| Conversion price: | HK$0.7873
|
| Conversion price reset: | On July 3, 2008; July 3, 2009; July 3, 2010; and July 3, 2011 subject to floor at 85% of prevailing conversion price and 70% of initial conversion price
|
| Call protection: | Non-callable
|
| Mandatory conversion: | From July 3, 2010, subject to hurdle at 130% of conversion price
|
| Puts: | Jan. 3, 2009; July 3, 2010
|
| Pricing date: | May 23
|
| Settlement date: | July 3
|
| Distribution: | Regulation S
|
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