China Hongqiao adjusts conversion price for two tranches of bonds due 2022, 2026

By William Gullotti

Buffalo, N.Y., June 11 – China Hongqiao Group Ltd. announced an adjustment to the conversion price of its $320 million 5% convertible bonds due 2022 and its $300 million 5.25% convertible bonds due 2026, according to an announcement.

The conversion price will be adjusted to HK$6.04 per H share from HK$6.29 per H share for the bonds due 2022.

For the bonds due 2026, the conversion price will be adjusted to HK$8.55 per H share from HK$8.91 per H share.

The adjustment is based on the terms and conditions of the bonds, which states that if the company pays or makes any capital distribution to shareholders then the conversion price shall be adjusted by multiplying the conversion price in force immediately before that capital distribution by a fraction that involves the current market price of one share and the fair market value.

Both adjustments will become effective on June 15.

The company is an aluminum producer based in Huixian, China.

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