Bakers on HK$2bn convertible bonds issue
Wednesday, 27 October 2004
Baker & McKenzie has advised Sino Land Company Limited, a subsidiary of Tsim Sha Tsui Properties Limited, on its HK$2bn (US$257m) convertible bond issue, due 30 November 2009.
Hong Kong-based securities group partner Elsa Chan led the Baker's team on the deal.
The proceeds from the issue will be used for general working capital purposes, with the payment obligations guaranteed by Sino Land.
Sino Land, the issuer (Getsmart Finance Limited) and the manager of the issue (JP Morgan Securities Ltd) entered into a subscription agreement on 19 October. The bonds are convertible into ordinary shares of HK$1 each in the share capital of Sino Land at an initial conversion price of HK$9.225. The manager also has the option to purchase an additional HK$500m (US$64m) worth of convertible bonds under an over-allotment option.
The bond issue will raise immediate net funds of HK$1.96bn (US$252m) - assuming the option is not exercised - for Sino Land and will enhance the financing flexibility of the company.