hong-long-releases-bond-terms

Hong Long releases bond terms

Market observers say the Chinese property company did well with the pricing of its $90 million deal, but sources stress this is not a sign that the high-yield market is opening.
The Hong Kong Stock Exchange HKSE yesterday released the terms of the $90 million bond deal issued by Chinese property developer Hong Long via sole bookrunner Citi and joint lead manager Lehman Brothers.

Closing with a coupon of 12.5%, the five-year deal was issued with an equity kicker in the form of 81 million warrants on Thursday afternoon last week.

Initially flagged as a $200 million public bond, the issue was downsized and eventually sold into the private placement sector after the market took a turn for the worse in July.

By opting for the private route, Hong Long protected itself from unnecessary market exposure. For example, Hong Long could have publicly released the terms...
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