Southwest Securities International Securities Ltd. has agreed to sell a principal amount of US$30 million of secured convertible bonds issued by XinRen Aluminum to Singularity Advisory (Cayman) Ltd.
Hong Kong-listed SWSI and the Cayman Islands-registered company entered into a deal after market close Dec. 30, 2016, involving the sale of the convertible bonds from XinRen Aluminum, which have a principal amount of US$30 million and a maturity date of 2020.
The convertible bonds will yield a maximum of 39,385,914 shares upon full conversion, which represents approximately 3.02% of the total issued share capital of XinRen Aluminum.
Singularity Advisory will pay in cash a first installment of $30 million, followed by another installment comprising interest on the convertible bonds and the premium being paid by the purchaser. The second installment must be paid on or before Feb. 28.
In accordance with regulations, shareholders are expected to receive a circular about the agreement on or before Jan. 23. If the company does not receive written approval from its controlling shareholder, a special general meeting will be held to discuss the disposal.
The net proceeds from the sale, which should not exceed US$31.2 million, is expected to be put toward general corporate purposes.