By Rebecca Melvin
New York, Sept. 13 – BEST Inc. prices $175 million of 1.75% five-year convertible notes with an initial conversion premium of 27.5%, according to a news release.
Pricing came at the cheap end of 1.25% to 1.75% coupon talk, and beyond the cheap end of 30% to 35% premium talk.
Goldman Sachs, Credit Suisse and J.P. Morgan Securities were bookrunners of the Rule 144A and Regulation S deal, which has a $25 million greenshoe.
The securities will be settled in shares.
The notes are non-callable for life, and there is an investor put on Sept. 30, 2022.
There is also takeover and dividend protection.
An entity affiliated with Alibaba Group Holding Ltd., one of the company's principal shareholders, has agreed to purchase $100 million of the notes.
The proceeds will be used to pay the cost of capped call transactions and for general corporate purposes.
The company has entered into capped call transactions with one or more of the initial purchasers of the notes. The cap price of the capped call transactions is initially $10.00 per American Depositary Share, which represents a premium of about 81% from the issuer’s perspective.
BEST is a Hangzhou, China-based integrated smart supply chain solutions and logistics services provider in China.
| Issuer: | BEST Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | Oct. 1, 2024
|
| Bookrunners: | Goldman Sachs, Credit Suisse and J.P. Morgan Securities
|
| Coupon: | 1.75%
|
| Conversion premium: | 25%
|
| Conversion price: | $7.05
|
| Conversion rate: | 141.8440
|
| Call options: | Non-callable
|
| Put options: | On Sept. 30, 2022
|
| Capped call: | At $10.00 per ADS, representing a premium of 81%
|
| Pricing date: | Sept. 12
|
| Settlement date: | Sept. 17
|
| Stock symbol: | Nasdaq: ADS: BEST
|
| Stock price: | $5.53 at market close Sept. 12
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 1.25%-1.75%, up 30%-35%
|
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