By Rebecca Melvin
New York, April 27 - Power Regal Group Ltd. priced HK$1.78 billion of five year convertible bonds at par to yield 2.25% with an initial conversion premium of 22.54%, according to a news release. The notes are convertible into Beijing Enterprises Holdings Ltd. stock.
Lead managers of the bond subscription agreement are Nomura International and Credit Suisse (Hong Kong) Ltd. Co-managers are HSBC and UBS.
There is an over-allotment option for an additional HK$395 million.
The bonds are non-callable for three years, with a put in year three.
About 80% of proceeds will be used for the company's expansion of natural gas pipeline and for water related businesses and to capture business opportunities arising from merger, acquisition and capital operation of the principal business.
The remaining 20% of the proceeds will be used as general working capital.
Beijing Enterprises Holdings is a Hong Kong-based company with activities in infrastructure, consumer products, tourism, retail and technology.
| Issuer: | Power Regal Group Ltd.
|
| Underlying stock: | Beijing Enterprises Holdings Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | HK$1.78 billion
|
| Greenshoe: | HK$395 million
|
| Maturity: | June 2, 2014
|
| Lead managers: | Nomura International and Credit Suisse (Hong Kong) Ltd.
|
| Co-managers: | HSBC and UBS
|
| Coupon: | 2.25%
|
| Price: | Par
|
| Yield: | 2.25%
|
| Conversion premium: | 22.54%
|
| Conversion price: | HK$43.50
|
| Calls: | Non-callable until June 2, 2012
|
| Put: | In year three
|
| Pricing date: | April 25
|
| Settlement date: | June 2
|
| Distribution: | Regulation S
|
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