GP Industries issues US$11m perpetual bonds with 9.5% annual distribution

The company will use the net proceeds for general corporate and working capital purposes. 

GP Industries Limited has entered into subscription agreements with investors for the issuance of fixed-rate resetting perpetual subordinated bonds up to $14.1m (US$11m).

The bonds will be issued in the denomination of US$500,000 and integral multiples of US$100,000 in excess thereof. 

The bonds will be perpetual and will confer a right to receive distribution payments at the rate of 9.5% per annum from 15 October 2024 until the first reset date on 15 October 2025.

Subsequent resets will occur on the second reset date and every year thereafter.

In addition, directors of the company Brian Li Yiu Cheung, Waltery Law Wang Chak, and Grace Lo Kit Yee have individually agreed to subscribe for US$4,000,000 in aggregate principal amount of bonds.

The distributions will be payable semi-annually in arrears in equal installments. Net proceeds will be used for general corporate and working capital purposes. 

GP Industries Limited did not appoint a lead manager, co-manager, placement agent, or underwriter for this issue.