Gome sells $345 million of renminbi CBs

The Chinese home electronics chain exercises most of the overallotment option after the convertibles gain significantly in the secondary market.

Gome Electrical Appliance Holdings has raised $345 million from the sale of a five-year renminbi-denominated, US dollar-settled convertible bond, which it will use to cover a potential buyback of outstanding convertible bonds. The existing bonds, which were issued in 2007, can be put back to the company in May 2010.

Gome initially sold Rmb2.05 billion $300 million of the new CB late Tuesday, but after a strong performance in the secondary market, it exercised $45 million of the $50 million...

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