Osim rolls out $170m zero-coupon unsecured convertible bonds due 2019

The bonds have a conversion price of $3.525 per new share.

Mainboard-listed OSIM International today revealed that its S$170 million in principal amount of zero-coupon unsecured convertible bonds due 2019 have been fully placed to institutional and accredited investors.

The convertible bonds will be convertible into new OSIM ordinary shares at an initial conversion price of S$3.525 per new share. The initial conversion price has been set at a 25% premium over the closing price of S$2.82 per share yesterday.

Upon full conversion of the Convertible Bonds, a total of approximately 48,226,950 new Shares will be issued, representing 6.19% of OSIM’s existing issued and paid-up share capital as at 26 August 2014.

OSIM intends to use the net proceeds of the issue to roll out and enhance its well-being and lifestyle business in Asia and beyond, finance potential strategic acquisitions which OSIM may pursue as part of its strategic objectives and general working capital.

Here’s more from OSIM:

In addition, OSIM has granted the sole bookrunner, HSBC an upsize option of up to S$30 million of the Convertible Bonds. This option will expire by 18 September 2014 or such later date as may be agreed between OSIM and HSBC, not being later than 2 October 2014. If fully subscribed, it represents an additional 1.09% of OSIM’s existing issued and paid-up share capital as at 26 August 2014.

“Following the conversion of our prior convertible bond issue, OSIM has seen strong demand from investors for a second issue. In light of this demand and the very competitive terms offered, OSIM is pleased to now offer this second issue. The net proceeds from this issue will provide OSIM with tremendous financial flexibility. For the current business, OSIM is continuing with the roll out and enhancement of our well-being and lifestyle business in Asia.

For investment opportunities, we will continue an extensive review of opportunities in Asia and beyond whilst maintaining a cautious stance to ensure that any investment enhances shareholder value. The balance of the funds will be utilised for general working capital purposes.” Said Ron Sim, Founder & CEO of OSIM