By Marisa Wong
Madison, Wis., Sept. 18 - Chaowei Power Holdings Ltd. has priced RMB 633 million of dollar-settled 7.25% convertible bonds at par with an initial conversion premium of 20.1%, according to a company announcement.
There is a 30-day greenshoe for an additional RMB 158 million of convertible bonds.
Goldman Sachs (Asia) LLC is the lead manager and bookrunner for the Regulation S deal. Daiwa Capital Markets Hong Kong Ltd. and BNP Paribas Capital (Asia Pacific) Ltd. are the co-managers.
The five-year convertibles have an initial conversion price of HK$5.20.
The convertibles are putable after three years and are callable in whole at any time if the volume-weighted average price of Chaowei stock is at least 130% of the conversion price then in effect for 20 consecutive trading days. The convertibles also have a clean-up call provision.
Proceeds will be used to fund future expansions, to upgrade the company's production facilities, to repay debt and for other corporate purposes.
Based in Changxing County, Zhejiang Province, China, Chaowei is a motive battery manufacturer operating in the electric bike market in China.
| Issuer: | Chaowei Power Holdings Ltd.
|
| Issue: | Dollar-settled convertible bonds
|
| Amount: | RMB 633 million
|
| Greenshoe: | RMB 158 million
|
| Coupon: | 7.25%, payable semiannually in dollars
|
| Price: | Par
|
| Yield: | 7.25%
|
| Initial conversion premium: | 20.1%
|
| Initial conversion price: | HK$5.20
|
| Bookrunner: | Goldman Sachs (Asia) LLC
|
| Co-managers: | Daiwa Capital Markets Hong Kong Ltd. and BNP Paribas Capital (Asia Pacific) Ltd.
|
| Call option: | In whole at any time if volume-weighted average price of Chaowei stock is at least 130% of conversion price for 20 consecutive trading days or if at least 90% principal amount of bonds has already been converted or redeemed
|
| Put option: | After three years
|
| Pricing date: | Sept. 17
|
| Settlement date: | Sept. 24
|
| Stock symbol: | Hong Kong: 951
|
| Stock price: | HK$4.33 at close Sept. 17
|
| Market capitalization: | HK$4.29 billion
|
| Distribution: | Regulation S
|
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