Novaland adjusts conversion price for $300M bond issue

Thursday, Feb 15, 2024 07:03

The new conversion price is set at VNĐ40,000 ($1.67) per share, 2.3 times the NVL market price. — Photo

Property developer Novaland (stock code: NVL) has approved a conversion price adjustment for a US$300 million bond issue. The new conversion price is set at VNĐ40,000 ($1.67) per share, 2.3 times the NVL market price.

This is the fourth time Novaland has changed the conversion price.

In the most recent adjustment on January 19, the conversion price was VNĐ77,000 a share, with a ratio of 59,771 shares/bond. Initially, the conversion price was VNĐ135,700 a share and the ratio was 33,916 shares/bond, later adjusted to VNĐ85,000 a share and 54,145 shares/bond.

In November 2022, Citigroup Global Markets Limited exchanged five bonds for 270,729 NVL shares at a price of VNĐ85,000 a share. The $300 million international convertible bond package was issued in July 2021 for international investors, with each bond having a nominal value of $200,000 and a fixed interest rate of 5.25 per cent per year.

In December 2023, Novaland announced the restructuring of the bond issue. The company and bondholders agreed to support and facilitate bond conversion transactions into common shares until May 20, 2024.

According to the terms agreed upon, interest accrued before December 31, 2024, will be paid late when the bond is repurchased or matures. Interest accrued after December 31, 2024, will be paid in cash. The repurchase value on the maturity date or the early repurchase date is calculated at 115 per cent of the initial investment capital plus late payment interest.

Each investor has three conversion times with a gradually decreasing conversion price. According to Novaland, the bond conversion transaction will reduce pressure on the company in the context of difficulties and legal obstacles that have affected the Vietnamese real estate market and the company's financial situation. — VNS

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