By Abigail W. Adams
Portland, Me., Sept. 10 – ESR Cayman Ltd. priced $350 million of five-year convertible notes on Wednesday at par with a coupon of 1.5% and an initial conversion premium of 27.5%, according to a company announcement.
Pricing came at the midpoint of talk for a coupon of 1.25% to 1.75% and an initial conversion premium of 25% to 30%, according to a market source.
Credit Suisse (Singapore) Ltd. and Morgan Stanley & Co. International plc were joint global coordinators and bookrunners for the Regulation S offering.
Deutsche Bank AG Hong Kong Branch was also a joint bookrunner.
The bonds are non-callable until Sept. 30, 2023 and then subject to a 130% hurdle.
They are putable on Sept. 30, 2023 and due to a relevant event.
The bonds will be listed for trade on the Singapore Exchange.
Net proceeds are expected to be $344.9 million.
Proceeds will be used to refinance existing debt, for potential acquisitions and investment opportunities and other for general corporate purposes.
ESR is a Hong Kong-based integrated logistics real estate platform focused on development, fund management and investment activities.
Issuer: | ESR Cayman Ltd.
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Securities: | Convertible bonds
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Amount: | $350 million
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Maturity: | Sept. 30, 2025
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Bookrunners: | Credit Suisse (Singapore) Ltd., Morgan Stanley & Co. International plc and Deutsche Bank AG Hong Kong Branch
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Coupon: | 1.5%
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Price: | Par
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Yield: | 1.5%
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Conversion premium: | 27.5%
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Conversion price: | HK$32.13
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Conversion rate: | 27.5%
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Call options: | Non-callable until Sept. 30, 2023 and then subject to a 130% hurdle
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Put options: | On Sept. 30, 2023 or for a relevant event
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Pricing date: | Sept. 9
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Settlement date: | Sept. 30
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Distribution: | Regulation S
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Talk: | Coupon of 1.25% to 1.75% and initial conversion premium of 25% to 30%
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Stock symbol: | HK: 1821
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Stock price: | HK$25.20 at market close Sept. 9
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Market capitalization: | HK$73.127
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