China’s Legend cancels planned RMB 3.5 billion five-, seven-year bonds

By Marisa Wong

Morgantown, W.Va., Dec. 6 – Legend Holdings Corp. has decided to cancel its previously proposed issue of second-tranche bonds due to fluctuations in interest rates and in order to keep financing costs at a “reasonable” level, according to a company announcement.

Last week the company said it would offer up to RMB 3.5 billion of corporate bonds on Monday and Tuesday. The base issue size was set at RMB 1 billion, but the offering included an up to RMB 2.5 billion over-allotment option.

The issue would have consisted of two types: five-year bonds with a coupon of 2.7% to 3.7% and seven-year bonds with a coupon of 3% to 4%. Each type had a base issue size of RMB 1 billion, but reallocations could be made between the two types.

The final coupon rates were to be determined through an offline bookbuilding. The bonds were to be sold at par.

Guotai Junan Securities Co. Ltd. and Goldman Sachs Gao Hua Securities Co. Ltd. were named as lead underwriters.

In June the company announced plans to issue up to RMB 10 billion of corporate bonds to repay interest-bearing debt. In July the company completed its first tranche totaling RMB 3.5 billion.

Legend is a Beijing-based investment holding company.

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