By Abigail W. Adams
Portland, Me., Dec. 14 – Shunten International Ltd. announced a placing agreement after the market close on Friday for up to HK$120 million of two-year convertible bonds with a coupon of 5% and an initial conversion premium of 17.6%.
Wealth Link Securities Ltd. is acting as placement agent for the best-efforts offering and will secure no less than six placements. The placement period will terminate after 10 business days.
The conversion price of HK$0.30 represents an initial conversion premium of 17.6% from the last reported sales price of stock, 16.3% over the five-day average and 16.1% over a 10-day average.
If placed in full, 400 million conversion shares will underlie the bonds.
Net proceeds are expected to be HK$115 million. Proceeds will be used to purchase 90% of the convertible bonds priced in 2017 with the remaining amount for general corporate purposes.
The placement is contingent upon at least 50% of the holders of the convertible bonds that priced in 2017 agreeing to amend the terms of the bonds to allow for the repurchase and at least 50% agreeing to sell the bonds to the company.
Shunten International is a Hong Kong-based holding company focused on health and beauty products.
| Issuer: | Shunten International Ltd.
|
| Securities: | Convertible bonds
|
| Amount: | HK$120 million
|
| Maturity: | Two years
|
| Placement agent: | Wealth Link Securities Ltd.
|
| Coupon: | 5%
|
| Conversion premium: | 17.6%
|
| Conversion price: | HK$0.30
|
| Announcement date: | Dec. 14
|
| Stock symbol: | HKG: 0932
|
| Stock price: | HK$0.26
|
| Market capitalization: | HK$541.37 million
|
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