Hong Kong-listed LVGEM (China) Real Estate Investment Co. Ltd.'s Gemstones International Ltd. subsidiary is planning to issue US$100 million of 4.00% guaranteed convertible bonds due May 17, 2023, subject to certain conditions.
The bonds are being issued at a price equal to 100% of the principal amount. They will be converted for a price of HK$3.76 apiece into 208,776,595 new LVGEM shares, reflecting approximately 4.23% of what would be the company's enlarged share capital, according to a filing.
The offering is pursuant to the general mandate approved by shareholders June 21, 2017. Prior to the latest issuance, LVGEM has 593,587,220 shares unused under the mandate.
LVGEM is expecting net proceeds of about US$98.0 million from the proposed offering. It plans to use the amount to finance project development, for debt refinancing and/or for general corporate expenditures.
