By Rebecca Melvin
New York, Dec. 1 - China Medical Technologies Inc. priced an upsized $125 million of six-year convertible senior notes late Tuesday at par to yield 6.25% with an initial conversion premium of 27.5%, according to a syndicate source.
The Rule 144A offering priced at the cheap end of talk for the coupon, which was 5.75% to 6.25%, and at the midpoint of 25% to 30% premium talk.
There is a $25 million greenshoe.
The bookrunner was Bank of America Merrill Lynch.
The notes will be non-callable until Dec. 15, 2013 and then provisionally callable in years four through six at a 130% price hurdle over the conversion price.
There are no puts, but the notes have full dividend and change-of-control protection.
Proceeds are earmarked to repurchase the company's outstanding 4% convertible notes due 2013, to pay for expenses associated with a capped call transaction and for general corporate purposes.
In connection with the offering, the company entered into a capped call transaction relating to $100 million in principal, which lifts the effective initial conversion premium from the issuer's perspective to $17.15, or 50% above the stock reference price.
Beijing-based China Medical is a medical device maker.
| Issuer: | China Medical Technologies Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $125 million, upsized from $100 million
|
| Greenshoe: | $25 million
|
| Maturity: | Dec. 15, 2016
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $14.57
|
| Conversion ratio: | 68.6189 ADS per bond
|
| Call: | Non-callable until Dec. 15, 2013, then provisionally callable subject to 130% price hurdle
|
| Puts: | No puts
|
| Takeover protection: | Yes, via make-whole table
|
| Dividend protection: | Yes, via conversion ratio adjustment
|
| Price talk: | 5.75%-6.25%, up 25%-30%
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 6
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq ADS: CMED
|
| Stock reference price: | $11.43
|
| Market capitalization: | $298 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
