By Devika Patel
Knoxville, Tenn., Jan. 30 - China Natural Gas, Inc. said raised RMB 145 million from a private placement of 5% guaranteed senior notes with investor Abax Global Capital. It also plans to sell an additional RMB 145 million of the notes to Abax by March 3. Abax also has an option to buy up to RMB 73 million more of the notes.
The notes due 2014 are accompanied by warrants for 2.9 million shares, which are exercisable at $7.3652 for seven years.
China Natural Gas has agreed to pay 3% more interest if its common shares are not listed on the Nasdaq Global Market, the Nasdaq Capital Market or the New York Stock Exchange one year from the issue date. The shares also must continue to trade on one of those exchanges for the life of the notes.
Proceeds will be used for the construction of the company's previously announced LNG processing facility in the Shaanxi Province and for the construction and acquisition of additional CNG filling stations throughout Xi'an and other regions of China.
Based in Xi'an, China, China Natural Gas is a provider of pipeline natural gas for industrial, commercial and residential use and compressed natural gas for vehicular fuel.
| Issuer: | China Natural Gas, Inc.
|
| Issue: | Guaranteed senior notes
|
| Amount: | RMB 290 million
|
| Greenshoe: | RMB 73 million
|
| Maturity: | 2014
|
| Coupon: | 5%
|
| Warrants: | For 2.9 million shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $7.3652
|
| Investor: | Abax Global Capital
|
| Announcement date: | Jan. 30
|
| Settlement dates: | Jan. 30 (for RMB 145 million), March 3 (for RMB 145 million)
|
| Stock symbol: | OTCBB: CHNG
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| Stock price: | $6.65 at close Jan. 29
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