By Rebecca Melvin
New York, Aug. 25 – China’s Franshion Brilliant Ltd. has priced a $200 million add-on to its existing 4% perpetual notes for a total deal size of $500 million, according to an announcement.
The company entered into a purchase agreement with Goldman Sachs (Asia) LLC for the new notes (expected: Baa3), which priced at 100.091%. The initial issue priced on July 3.
The notes are guaranteed by China Jinmao Holdings Group Ltd. There is a reset date after 5.5 years on Jan. 3, 2023 at which time the distribution rate will be reset to the applicable treasury rate plus an initial spread of 223.8 basis points plus a 3% step-up margin.
Proceeds will be used to refinance debt and for other general corporate purposes.
Franshion Brilliant is a subsidiary of Franshion Properties (China) Ltd., which is a subsidiary of China-based China Jinmao Holdings Group Ltd.
China Jinmao is a Hong Kong-based investment holding company that invests in and develops real estate in mainland China.
| Issuer: | Franshion Brilliant Ltd.
|
| Guarantor: | China Jinmao Holdings Group Ltd.
|
| Amount: | $200 million
|
| Maturity: | Perpetual
|
| Description: | Senior notes
|
| Initial purchaser: | Goldman Sachs (Asia) LLC
|
| Coupon: | 4%
|
| Price: | 100.091
|
| Initial yield: | 4%
|
| Reset dates: | First reset Jan. 3, 2023 and then every five years thereafter
|
| Initial spread: | 223.8 bps
|
| Step-up margin: | 3%
|
| Change of control: | Yes
|
| Trade date: | Aug. 24
|
| Settlement date: | Sept. 1
|
| Rating: | Moody's: Ba2
|
| Distribution: | Regulation S
|
| Original issue: | $300 million priced at par on July 3, 2017
|
| Total amount: | $500 million
|
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