By Lisa Kerner
Charlotte, N.C., July 22 - Zhuguang Holdings Group Co. Ltd. agreed on Monday to place up to $200 million of 12½% three-year senior notes along with warrants for up to $40 million (HK$312 million) of shares.
Design Time Ltd., Mile Rise Holdings Ltd. and Bright Creation Investment Ltd. agreed to purchase $95 million of the notes and will receive warrants for $19 million of shares.
The warrants have a strike price of HK$2.2691, according to a company news release.
After the initial closing, the company may sell up to $55 million more notes to other investors and, once additional security has been provided to the security agent, a further $50 million for a total of $200 million.
The notes are secured by various collateral security.
The placing agents are CCB International Capital Ltd. and ABCI Capital Ltd.
Up to $66 million of the proceeds may be used for debt repayment, including the company's 15% notes, according to the purchase agreement. Not less than 80% of the balance of the proceeds may be used for funding the future acquisition of certain real estate projects, and not more than 20% of the balance of the proceeds may be used for general working capital.
Zhuguang is an investment holding company based in Hong Kong. It operates in two segments: property sales and property rental.
| Issuer: | Zhuguang Holdings Group Co. Ltd.
|
| Issue: | Senior notes
|
| Amount: | $200 million
|
| Maturity: | Three years
|
| Coupon: | 12½%
|
| Warrants: | For $40 million (HK$312 million) of shares, or 137,499,449 shares
|
| Strike price: | HK$2.2691
|
| Pricing date: | July 22
|
| Distribution: | Private placement
|
| Purchasers: | Design Time Ltd., Mile Rise Holdings Ltd., Bright Creation Investment Ltd.
|
| Placing agents: | CCB International Capital Ltd., ABCI Capital Ltd.
|
| Stock listing: | Hong Kong: 1176
|
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