AMTD Group successfully leads Sun Hung Kai & Co. Limited’s bond exchange offering and pricing of New 5yr USD Notes
On May 23, 2016, AMTD acted as the Joint Dealer Manager, Joint Global Coordinator and Joint Bookrunner on a highly successful liability management exercise and a new US$ 5-year international bond offering (the “Transaction”) for Sun Hung Kai & Co. Ltd. (86.HK, the “Company”). The Transaction comprised of an US$121.6mm exchange offering of the Company’s existing 6.375% US$350mm notes due 2017 into a new 4.75% 5-year notes due 2021 (the “New Notes”), in conjunction with an additional US$240mm issuance of the New Notes, drawdown from the Issuer’s US$2bn MTN Programme. As a result, the combined total issue size of the Transaction was US$361.6mm.
AMTD demonstrated superior execution and distribution capability in the Transaction, having acted as Joint Global Coordinator managing the execution process and also contributed the 2nd largest allocation in the Transaction, significantly out-sold other Joint Bookrunners and only behind the issuer’s own distribution network. On the back of a successful investor marketing and bookbuilding process, the Transaction was priced at par with 4.75% coupon, 12.5bps tighter than initial price guidance of 4.875% area released. Demand generated by AMTD allowed the Issuer to successfully achieve its aggressive pricing and size objectives as well as allowed the Issuer to proactively and effectively manage its upcoming maturities.
In terms of execution timeline, given the complex nature of the Transaction, it took 2.5 weeks to complete execution from deal mandate announcement (on May 6) to final pricing (on May 23). The overall timeline and process were well designed and executed to allow sufficient time for investor marketing and for investors to participate in the exchange offering and new issue components of the Transaction, whereby investor roadshow in Hong Kong and Singapore were conducted between May 9-11, release of minimum coupon announcement on May 12, expiry of the exchange offer on May 20 and followed by successful pricing of the Transaction on May 23.
This is the fifth bond deal completed by AMTD Group this year. AMTD also successfully led US$300mm senior bond offering of Yunnan Provincial Investment, the largest comprehensive holding company in Yunnan province, debut US$180mm senior bond offering of Carnival Group (996.HK), China’s only publicly listed operator of large-scale integrated tourism, hospitality and retail attraction, HK$500mm international bond issuance of Emperor International Holdings Limited (163.HK), a famous Hong Kong-listed real estate company, as well as AMTD Group’s debut Reg S US$110mm 3-year HKSE-listed bond offering. These deals well demonstrate AMTD Group’s competence in distribution network.
Sun Hung Kai & Co (86.HK, the "Group") is an investment and finance firm with a focus on Greater China. Since its foundation in 1969, the Group has owned and operated market-leading businesses in financial services, striving to generate long-term capital growth for its shareholders. Leveraging on its heritage and operational experience, the Group invests in a diverse yet complementary portfolio of investment and finance businesses. Through an extensive branch and office network in more than 200 locations across Hong Kong and Mainland China, the finance business provides funding solutions to individuals, small businesses and corporates. It is the major shareholder of leading consumer finance firm United Asia Finance Limited and a substantial shareholder of Sun Hung Kai Financial Group Limited.