Baker & McKenzie’s securities group acted for Sino Land Company Limited (Sino Land), a subsidiary of Tsim Sha Tsui Properties Limited, on its HK$2 billion ($340 million) convertible bond issue, due 30 November 2009.
The proceeds from the issue will be used for general working capital purposes. The payment obligations are guaranteed by Sino Land.
Sino Land, the issuer (Getsmart Finance Limited) and the manager of the issue (JP Morgan Securities Ltd), entered into a subscription agreement on 19 October.
Elsa Chan, a partner in the securities group at Baker & McKenzie’s Hong Kong office, led the team acting for Sino Land on the deal.
“It is a Sino Land deal, but because the parent of Sino Land, Tsim Sha Tsui Properties, is also listed in Hong Kong, there are more complicated regulatory issues we had to deal with,” Chan said.
She said a team of six lawyers worked on various aspects of the deal. “The deal was put together very efficiently, thanks to the professionalism of all parties involved.”
The bonds are convertible into ordinary shares of HK$1 each in the share capital of Sino Land at an initial conversion price of HK$9.225.
The manager also has the option to purchase an additional HK$500 million worth of convertible bonds under an over-allotment option.
The bond issue will raise immediate net funds of HK$1.96 billion (assuming the option is not exercised) for Sino Land and will enhance the financing flexibility of the company.
The manager was represented by Linklaters.