Hsin Chong cuts conversion price of $100 million 6% bonds due 2017

By Susanna Moon

Chicago, May 20 – Hsin Chong Group Holdings Ltd. said it lowered the conversion price of its $100 million 6% convertible bonds due 2017.

The conversion price was reset to HK$0.78 per share from HK$1.00 per share, according to a company notice.

The reduction was required under the note terms because the average of the stock closing prices for the 20 consecutive trading days immediately prior to the reset date of May 20 converted into dollars was less than the conversion price as long as the adjustment is not lower than HK$0.70 per share, which is 70% of the conversion price on the reset date.

The current market price was calculated at HK$0.78 per share, which was less than the conversion price of HK$1.00 per share.

If the bonds are fully converted at the new conversion price, an aggregate of 993,615,384 shares would be issued, representing about 17.5% of the existing issued shares and about 14.89% of the issued shares of the company as enlarged by the issue of shares under full conversion of the bonds.

Hsin Chong Group, formerly Hsin Chong Construction Group Ltd., is an investment holding company based in Hong Kong. The company and its subsidiaries are engaged in building construction, civil engineering construction, electrical and mechanical installation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.