structured-exchangeable-meets-with-approval

Structured exchangeable meets with approval

The chairman of Singapore-listed steel maker Delong raises $121 million by selling bonds that can be exchanged for Delong stock.
While credit markets remain jittery, the chairman of Chinese steel manufacturer Delong Holdings on Friday raised at least S$175 million $121 million from the sale of bonds that are exchangeable into Delong stock. The deal has a greenshoe that could increase the size to as much as S$220 million $153 million.

The five-year, zero-coupon bonds were sold by a company called Best Decade Holdings, which holds the chairmanÆs 77% stake in the Singapore-listed steel maker but has no other assets. To give investors adequate downward protection, the deal included a fair bit of structuring that was put in place by Citi as the sole bookrunner. This included over-collateralising the value of the bond issue...
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