Latest news with #HenryCheng
Business Times
3 days ago
- Business
- Business Times
New World bondholders receive interest payment on dollar note
[HONG KONG] New World Development has paid interest due Monday (Jun 16) on a dollar note, according to several bondholders, giving the indebted Hong Kong builder some breathing room as it works to complete an HK$87.5 billion (S$14.3 billion) loan refinancing deal. The company faced US$5.1 million in interest payments due Monday on the 5.875 per cent bond, according to Bloomberg calculations. Investors were closely monitoring the deadline after the builder recently decided to defer coupon payments on four perpetual notes. The payment was crucial for New World, as an event of default could be triggered if it failed to honour the coupon within 14 days of the due date, according to an offering document seen by Bloomberg News. It can sometimes take two to three days for dollar bondholders to receive interest payments once they are initiated. New World did not immediately respond to a request for comment. New World, which is grappling with HK$210.9 billion of liabilities, is one of the most indebted of Hong Kong's major developers. Any signal of a possible default by the builder, controlled by the family of Hong Kong tycoon Henry Cheng, could intensify concerns about sluggish real estate market conditions and possible spillover effects. The builder has prioritised talks with banks for months to secure the loan refinancing deal to ease its liquidity stress. Separately, it is also using one of its most valuable assets in Hong Kong – a harbour complex that houses luxury mall K11 Musea – to seek a new loan of as much as HK$15.6 billion. BLOOMBERG
Fashion Network
3 days ago
- Business
- Fashion Network
Chow Tai Fook targets $1 billion via Hong Kong bond sale
By Bloomberg Chow Tai Fook Jewellery Group Ltd. is seeking to raise HK$7.85 billion ($1 billion) from the sale of bonds convertible into stock, according to terms of the deal seen by Bloomberg News. According to the terms, the bonds will mature around the end of June 2030. They will carry a coupon ranging from zero to 0.5%, payable semi-annually. The conversion premium is set between 35% and 45% above the reference price. The company is controlled by Hong Kong billionaire Henry Cheng's family, whose empire includes distressed developer New World Development Co. Chow Tai Fook will use proceeds from the offering to develop and finance its gold-jewellery business, upgrade stores and expand domestically and internationally, the terms show. UBS Group AG, the sole bookrunner of the deal, is proposing to conduct a share placement aimed at facilitating hedging for investors buying the bonds, according to the terms. As part of that placement, Chow Tai Fook will buy back as much as HK$1.57 billion of shares.
Business Times
3 days ago
- Business
- Business Times
Chow Tai Fook Jewellery upsizes convertible to HK$8.8 billion
[HONG KONG] Henry Cheng's Chow Tai Fook Jewellery Group has increased the size of its convertible bond sale to HK$8.8 billion (S$1.4 billion), according to sources familiar with the matter, making it potentially one of Hong Kong's biggest this year. The bonds due in 2030 are poised to be priced with a 0.375 per cent coupon and a 35 per cent conversion premium, the sources said, asking not to be identified as the information is not public. The deal was originally marketed to raise HK$7.85 billion, according to terms seen earlier by Bloomberg News. The offering drew orders for multiple times the number of bonds available, one of the sources said. Representatives for Chow Tai Fook did not immediately respond to requests for comment made outside normal business hours. Chow Tai Fook, which recently reported better-than-expected earnings, has been campaigning to lift its image, positioning itself closer to premium labels such as Tiffany and Cartier instead of a traditional gold retailer. The offering comes as New World Development, which is controlled by the same family controls Chow Tai Fook, grapples with more than HK$200 billion of liabilities as Hong Kong's most indebted major developer. UBS Group, the sole book-runner of the deal, is proposing to conduct a share placement aimed at facilitating hedging for investors buying the bonds, according to the terms. As part of that placement, Chow Tai Fook will buy back as much as HK$1.57 billion of shares. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The convertible bonds were originally marketed with a coupon of 0 to 0.5 per cent payable semiannually, and a conversion premium of 35 to 45 per cent over the clearing price of the placement, which is known as a delta placement, the terms showed earlier. Proceeds will be used for the jewellery business and general working capital. Chow Tai Fook shares rose 6 per cent to HK$13.72 in Hong Kong on Monday (Jun 16) before news of the sale emerged. The stock has doubled this year after falling 42 per cent last year. Meanwhile, Asia has seen a string of issuance of bonds convertible into stock this year. Singapore's Grab Holdings last week raised US$1.5 billion in a convertible-bond deal that brought in more cash than initially expected. Ping An Insurance (Group) of China earlier this month sold HK$11.8 billion in such bonds. Like Chow Tai Fook, Ping An Insurance also denominated its convertibles in Hong Kong dollars. The currency has slumped in recent weeks towards the weak end of its official trading band against the greenback, after local interest rates fell to a three-year low and widened the discount to their US peers to rarely seen levels. BLOOMBERG
Fashion Network
3 days ago
- Business
- Fashion Network
Chow Tai Fook targets $1 billion via Hong Kong bond sale
Chow Tai Fook Jewellery Group Ltd. is seeking to raise HK$7.85 billion ($1 billion) from the sale of bonds convertible into stock, according to terms of the deal seen by Bloomberg News. According to the terms, the bonds will mature around the end of June 2030. They will carry a coupon ranging from zero to 0.5%, payable semi-annually. The conversion premium is set between 35% and 45% above the reference price. The company is controlled by Hong Kong billionaire Henry Cheng's family, whose empire includes distressed developer New World Development Co. Chow Tai Fook will use proceeds from the offering to develop and finance its gold-jewellery business, upgrade stores and expand domestically and internationally, the terms show. UBS Group AG, the sole bookrunner of the deal, is proposing to conduct a share placement aimed at facilitating hedging for investors buying the bonds, according to the terms. As part of that placement, Chow Tai Fook will buy back as much as HK$1.57 billion of shares.
Fashion Network
4 days ago
- Business
- Fashion Network
Chow Tai Fook targets $1 billion via Hong Kong bond sale
Chow Tai Fook Jewellery Group Ltd. is seeking to raise HK$7.85 billion ($1 billion) from the sale of bonds convertible into stock, according to terms of the deal seen by Bloomberg News. According to the terms, the bonds will mature around the end of June 2030. They will carry a coupon ranging from zero to 0.5%, payable semi-annually. The conversion premium is set between 35% and 45% above the reference price. The company is controlled by Hong Kong billionaire Henry Cheng's family, whose empire includes distressed developer New World Development Co. Chow Tai Fook will use proceeds from the offering to develop and finance its gold-jewellery business, upgrade stores and expand domestically and internationally, the terms show. UBS Group AG, the sole bookrunner of the deal, is proposing to conduct a share placement aimed at facilitating hedging for investors buying the bonds, according to the terms. As part of that placement, Chow Tai Fook will buy back as much as HK$1.57 billion of shares.
