Brilliance China sells new convertibles to refinance unbrilliant CB

Company is bullish on turnaround story, but downside protection features needed to compensate for desired high premium.
Hong Kong-listed Brilliance China Automotive Holdings last night raised $182.68 million from the sale of convertible bonds that got the bookrunner working for its money.

The mainland car maker, which has been under pressure over the past year because of oversupply in the industry and a margin squeeze caused by rising steel prices, needed cash to be able to refinance an outstanding $200 million CB that is deeply out of the money and is likely to be put back to the company in November.

But rather than playing it safe and going for a low conversion premium to ensure success, the management wanted to make the most of its bullish views about the companyÆs growth...
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