By Abigail W. Adams
Portland, Me., Jan. 28 – Cathay Pacific Airways Ltd. priced HK$6.74 billion of five-year convertible notes on Thursday at par with a coupon of 2.75% and an initial conversion premium of 30%, according to a company announcement.
BNP Paribas Securities (Asia) Ltd., BOCI Asia Ltd., the Hongkong and Shanghai Banking Corp. Ltd. and Morgan Stanley & Co. International plc were joint bookrunners for the Regulation S offering.
The convertible notes are callable upon a taxation even or if 90% or more of the principal amount has been converted, redeemed or canceled.
The notes are putable upon a change-of-control or delisting event.
In connection with the offering, Hongkong and Shanghai Banking Corp. entered into a stock lending arrangement with a shareholder to borrow 289,675,300 shares.
The bonds will be listed for trade on the Stock Exchange of Hong Kong Ltd.
Proceeds will be used for general corporate purposes.
Cathay Pacific is a Hong Kong-based airline.
| Issuer: | Cathay Pacific Airways Ltd.
|
| Securities: | Convertible notes
|
| Amount: | HK$6.74 billion
|
| Maturity: | Feb. 5, 2026
|
| Bookrunners: | BNP Paribas Securities (Asia) Ltd., BOCI Asia Ltd., the Hongkong and Shanghai Banking Corp. Ltd. and Morgan Stanley & Co. International plc
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 30%
|
| Conversion price: | HK$8.57
|
| Call options: | Upon a taxation event and subject to a clean-up
|
| Put options: | Upon a delisting or take-over event
|
| Pricing date: | Jan. 28
|
| Settlement date: | Feb. 5
|
| Distribution: | Regulation S
|
| Stock symbol: | HKG: 0293
|
| Stock price: | HK$6.59 at market close on Jan. 27
|
| Market capitalization: | $38.3 billion
|
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