Singapore-listed Golden Agri Resources has raised US$400 million from a five-year convertible bond offering to finance potential future acquisitions, and for general corporate purposes.This is the largest CB offering so far this year in Asia.
The CB was priced at the wider end of the marketed terms, with the coupon and the yield to maturity fixed at 2.5 percent against the marketed guidance of 2.25 percent to 2.5%. The conversion premium was set at 28 percent from the initial range of 28 percent to 32%. At 28 percent conversion premium, initial conversion price works out to be S$0.89. The offering was launched on September 6 at the base issue size of US$400 million with an upsize option of US$100 million, which was not exercised.
The deal was launched in Asia morning and left open until Europe opened, unlike most other Asian CBs which are launched after Asian markets close and are priced after a few hours of bookbulding.
According to a banker close to the deal, the book was left open for longer hours largely to prevent investors interest to get diverted by a AIA block trade, which was widely expected to hit the market after the latest lock-up on AIG’s holdings in Hong Kong-listed AIA expired on September 4.
AIG did launch a HK$16 billion (US$2.06) sell-down in Hong Kong-listed AIA after the market closed on September 6, and was priced later that night at HK$26.50 per share, or near the top end of initial guidance of HK$25.75 to HK$26.75.
The Global Agri CB had mix of hedge funds and outright investors from Asia and Europe, says the source.
The five-year CB has an investor put at year three at 100 percent of principal amount. There is an issuer call as well after year three years subject to a 130 percent hurdle.
Citi was the global coordinator for the CB as well as joint bookrunner along wtihbP Paribas, CIMB and Credit Suisse.
Golden Agri is an Indonesia-based operator of palm plantations and has total planted area of 457,000 hectares in the country.