By Abigail W. Adams
Portland, Me., Dec. 4 – Prosperity International Holdings Ltd. entered into a placing agreement for HK$30 million of 8% convertible bonds in two tranches after the market close on Wednesday, according to a company news release.
Victory Securities Co. Ltd is serving as placement agent for the best-efforts offering.
The offering consists of HK$10 million of 8% convertible bonds due 2019 and HK$20 million in 8% convertible bonds due 2020.
The conversion price will be HK$0.06, which represents a premium of 46.34% to the closing price of Prosperity stock on Dec. 4 and the average closing price for the last 20 consecutive trading days and a premium of 49.25% to the average closing price over the last five and 10 consecutive trading days.
The conversion price is subject to adjustment under certain circumstances.
The maturity of the 8% convertible bonds due 2019 may be extended to 2020 and the maturity of the 8% convertible bonds due 2020 may be extended to 2021 upon agreement.
The bonds are callable. They are puttable upon a delisting event.
There will be a maximum of 166.67 million new shares underlying the convertible bonds due 2019 and up to 333.33 million new shares underlying the convertible bonds due 2020.
Proceeds are expected to be HK$9.5 million from the convertible bonds due 2019 and HK$19 million for the convertible bonds due 2020.
Proceeds will be used for the partial repayment of the company’s loans and for general corporate purposes, including the development and expansion of the company’s business and working capital.
Prosperity International Holdings is a Hong Kong-based company engaged in the mining and trading of iron ore.
| Issuer: | Prosperity International Holdings Ltd.
|
| Securities: | Convertible bonds
|
| Bookrunner: | Victory Securities Co. Ltd.
|
| Coupon: | 8%
|
| Price: | Par
|
| Conversion premium: | 46.34%
|
| Conversion price: | HK$0.06
|
| Call options: | Callable
|
| Put options: | Upon a delisting event
|
| Pricing date: | Dec. 4
|
| Stock symbol: | HK: 0803
|
| Stock price: | HK$0.041 at market close Dec. 4
|
| Market capitalization: | HK$535.34 million
|
|
|
| 2019
|
| Amount: | HK$10 million
|
| Maturity: | 2019 which may be extended to 2020
|
|
|
| 2020
|
| Amount: | HK$20 million
|
| Maturity: | 2020 which may be extended to 2021
|
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