Bangkok--11 Sep--Siam Commercial Bank
Bangkok Dusit Medical Services Public Company Limited (SET: BGH) (the “Company”) priced a THB 10 billion USD-settled offering of convertible bonds (the “Bonds”). Zero-coupon with 5 year term
It is the first ever Thai Baht-denominated zero-coupon convertible bond issued by a Thai issuer. This offering is the Company’s second convertible bond offering since 2006 when it issued USD124mn of convertible bonds.
The initial conversion price has been set at THB 21.045 per share. On the date the transaction was first announced, June 18, 2014, the Company’s share price closed at THB 16.10. Bondholders have a put option to have the Bonds redeemed on 18 September 2017, at 106.152 percent of the principal amount of the Bonds held by such bondholders. The Company has a call option to redeem the bonds at any time after 18 March 2017 if the closing price of the Company’s shares is at least 130 per cent of the applicable early redemption amount, as specified in the terms and conditions of the bonds, divided by the effective conversion ratio. The Company plans to use the proceeds from the convertible bonds for general corporate purpose including business expansion and refinance existing debt.
The offering was made under Regulation S to investors outside Thailand and the United States. The offering received participation from investors in Asia and Europe during the bookbuilding process.
Narumol Noi-am, Chief Financial Officer, said “This convertible bond offering is a great stepping stone for us to continue to pursue growth as it provides us with attractive financing cost as well as expand our international investor base both in Asia and Europe. We have recently announced the acquisitions of hospitals and a healthcare-related business. We have 9 new hospitals in the pipeline and Phuket International Hospital which is now on process of M&A, totally we will have 44 hospitals in the group.”
The transaction is expected to close on September 18, 2014 (following satisfaction of certain conditions precedents which are customary for an offering of convertible bonds) and the Bonds will be listed on the Singapore Exchange Securities Trading Limited.
Bank of America Merrill Lynch, Credit Suisse, Phatra Securities and The Siam Commercial Bank acted as joint bookrunners and joint lead managers for this transaction.