Ctrip.com International, a Chinese travel agent, has raised $800 million from a convertible bond sale.
The Chinese group increased the deal size from the $500 million to $700 million while it was marketing the bonds to investors, a sign of strong demand.
The company priced the convertible bond at the tight end of the range used to guide investors, with a 1.25% coupon and a 42.5% conversion premium. The conversion premium is the highest for a Chinese issuer since 2007.
Ctrip said on Friday it had priced the notes due 2018. The company then exercised the greenshoe and increased the deal size to $800 million one day after pricing.
The group, which also offers ticketing services, packaged tours and corporate travel management in China, said the notes would be convertible into Ctrip's American depositary shares, each representing as of Friday 0.25 of an ordinary share of Ctrip based on an initial conversion rate of 12.7568 of its ADSs per $1,000 principal amount of notes.
Ctrip’s shares have surged more than 200% over the past 12 months since its convertible bond offering and share buy back in September last year. JPMorgan was the sole bookrunner on both sales.
Ctrip will not have the right to redeem the notes prior to maturity. Holders of the notes will have the right to require the company to repurchase for cash all or part of their notes on October 15, 2016 at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, October 15, 2016.
