By Devika Patel
Knoxville, Tenn., June 9 - Green Dragon Gas Ltd. said it sold a $50 million 7% convertible bond to funds managed by GLG Partners LP.
The bond is initially convertible at $9.10 per share, a 56% premium. It matures on June 7, 2015.
The company may call the bonds at par after three years if the company's share price exceeds 130% of the conversion price, or $11.83, over a defined period. Holders may put the bonds, if they haven't been called, on the third anniversary of the issue date at par.
Nomura Securities and Credit Suisse were co-agents.
Proceeds will be used by the company to expand its rig capability to drill directional SIS wells, expand its gas sales and distribution infrastructure including CNG retail stations, expand gas distribution pipelines in line with its 2010 targets and for working capital.
Green Dragon is a gas production company with offices in Beijing.
| Issuer: | Green Dragon Gas Ltd.
|
| Issue: | Convertible bond
|
| Amount: | $50 million
|
| Maturity: | June 7, 2015
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | $9.10
|
| Conversion premium: | 56%
|
| Call: | At par after three years if the company's stock exceeds 130% of the conversion price
|
| Put: | At par after three years
|
| Warrants: | No
|
| Agents: | Nomura Securities and Credit Suisse
|
| Investor: | GLG Partners LP
|
| Settlement date: | June 9
|
| Stock symbol: | London: GDG
|
| Stock price: | $5.70 at close June 9
|
| Market capitalization: | £568 million
|
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