Singapore-Listed PCRD To Sell US$100M Bonds To Intel Unit
Dow Jones Newswires
SINGAPORE -- Singapore-listed Pacific Century Regional Developments Ltd. (P.PCR) Monday said it will issue US$100 million worth of redeemable exchangeable bonds due between 2006 and 2007 to Intel Capital Corp., a unit of Intel Corp. (INTC).
Carrying a coupon of 3% a year, the bonds will allow Intel Capital to exchange the bonds for shares in Pacific Century Cyberworks Ltd. (PCW), a Hong Kong-listed telecommunication unit of PCRD.
The initial exchange price for the bonds is HK$2.50 a PCCW share. Friday, PCCW shares closed at HK$2.275 on the Stock Exchange of Hong Kong.
If the bonds are exchanged at the initial price, the transaction will give Intel Capital a 1.4% stake in PCCW, PCRD said. At the same time, PCRD's stake in PCCW will slide to 32.1% from 33.5%.
PCRD said it will use proceeds from the bond issue for working capital, debt reduction, funding for future investments, and improvement of financial flexibility.
PCRD's principal businesses include those of PCCW, Pacific Century Insurance Holdings Ltd. (H.PCN), and property investment and development.
Also listed in Hong Kong, Pacific Century Insurance is another unit of PCRD.
-By Shen Hong, Dow Jones Newswires; 65-4154-156; hong.shen@dowjones.com
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