CP Foods offers exchangeable bonds

The $410 million exchangeable bonds offered by CP Foods will mature in 2021 and pay a coupon of 0.50 per cent per annum. It gave no details of how it plans to use the funds raised from the bond offer.
The $410 million exchangeable bonds offered by CP Foods will mature in 2021 and pay a coupon of 0.50 per cent per annum. It gave no details of how it plans to use the funds raised from the bond offer.PHOTO: BLOOMBERG

BANGKOK • Thailand's Charoen Pokphand Foods (CP Foods) said yesterday its CP Foods Holding Ltd subsidiary has priced and offered US$300 million (S$410 million) of exchangeable bonds to foreign investors and has applied for the bonds to be listed on the Singapore Exchange by Sept 26.

The bonds, which mature in 2021, pay a coupon of 0.50 per cent per annum, CP Foods said in a statement. It gave no details of how it plans to use the funds raised from the bond offer.

Bond holders have the option to convert the bonds into common shares of CP All, which are held by CP Foods Holding, or redeem them through CP Foods Holding on Sept 22, 2018, the statement said.

About 135.29 million shares of CP All are set to be exchanged, it said. On the exercise of exchange rights, the bond holders will initially be entitled to receive 90,190 CP All shares for each US$200,000 principle amount of the bonds.

CP Foods' unit will redeem the bonds on Sept 22, 2021 at 110.58 per cent on their principle amount unless the bonds are previously exchanged or redeemed.

CP Foods is Thailand's largest meat and feed producer and has an interest in CP All, the country's largest convenience store operator.

REUTERS

A version of this article appeared in the print edition of The Straits Times on September 17, 2016, with the headline 'CP Foods offers exchangeable bonds'. Print Edition | Subscribe