By William Gullotti
Buffalo, N.Y., April 18 – AMTD IDEA Group, formerly known as AMTD International Inc., sold an additional $250 million 7¼% senior perpetual notes at par, according to a listing notice with appended offering documents on Tuesday.
The latest tranche of perpetuals, sold under the group’s new $1 billion medium-term note program, will be consolidated to form a single series with the initial $200 million issued May 14, 2020 by former AMTD Group Co. Ltd.’s subsidiary, AMTD International Inc.
The distribution rate for the Regulation S perpetuals will reset on May 14 and at three-year intervals until redeemed, to Treasuries plus the initial 701.1 basis point spread plus an additional 500 bps step-up margin. Distributions may be deferred, subject to dividend pusher/stopper clauses as well as cumulative and additional distribution conditions.
The perpetuals may be redeemed at the issuer’s option, starting on the rate reset date, and on any subsequent distribution date at par plus interest. They may also be redeemed early at par for reasons including taxation reasons, accounting reasons or a relevant indebtedness event. Holders will also be able to exercise put rights at 101 for a change of control.
The distribution rate is further subject to a 500 bps increase if perpetuals remain outstanding after a relevant indebtedness event or a change of control. The increase will be removed if the event is cured or no longer exists.
AMTD Wealth Management Solutions Group Ltd. was the sole manager for the add-on.
Listings for the perpetuals are expected on the Singapore Exchange and the Hong Kong Exchange effective April 18.
AMTD, based in Hong Kong, is engaged in investment banking, asset management and strategic investment businesses.
| Issuer: | AMTD IDEA Group
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| Amount: | $250 million, add on
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| Issue: | Fixed-rate senior perpetual notes
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| Tenor: | Perpetual
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| Manager: | AMTD Wealth Management Solutions Group Ltd.
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| Trustee: | Bank of New York Mellon (acting via its London, Luxembourg and Hong Kong branches as fiscal agent, issuing agent, paying agent, transfer agent, CMU lodging agent and registrar)
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| Counsel to issuer: | Clifford Chance (England)
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| Coupon: | 7¼%; resets May 14 and every three years to Treasuries plus 1,201.1 bps; may be deferred, subject to dividend pusher/stopper clauses as well as cumulative and additional distribution conditions; subject to curable 500 bps increase if not redeemed upon change of control or relevant indebtedness event
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| Price: | Par plus accrued interest from, and including, Nov. 14, 2022
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| Call features: | At the issuer’s option at par plus interest, starting May 14 and on each subsequent distribution payment date thereafter; at any time at par plus interest for taxation reasons, accounting reasons or relevant indebtedness event
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| Change of control: | At 101 plus interest
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| Pricing date: | April 12
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| Issue date: | April 17
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| Listing date: | April 18
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| Distribution: | Regulation S
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| ISIN: | XS2161843789
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| Total issue size: | $450 million, including $200 million issued May 14, 2020
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