BBMG to issue up to RMB 2.82 billion six-year convertible bonds

By Abigail W. Adams

Portland, Me., March 19 – BBMG Corp. announced plans to price up to RMB 2.82 billion of six-year convertible bonds following authorization after a board of directors meeting on March 18, according to a company announcement.

The bonds will be issued by subsidiary Tangshan Jidong Cement Co., Ltd.

The initial conversion price shall be no lower than the average trading price of shares for the 20 days before the release of the explanatory announcement.

It will be the higher of the average trading price over the 20 days prior to the announcement or the average trading price on the day of the announcement.

The conversion price may be reduced if the company’s shares close below 85% of the conversion price on at least 15 trading days during any consecutive 30-trading-day period.

The notes are callable after six months subject to a 130% hurdle.

The notes will be putable in the last two years if the company’s shares are lower than 70% of the conversion price.

Existing shareholders will have preemptive subscription rights to the convertible bonds.

Proceeds will be used to fund various cement kiln processing projects.

BBMG is a Beijing-based cement company.

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