Swire Pacific Plans to Raise $600 Million via Exchangeable Bonds

By Tracy Qu

Hong Kong conglomerate Swire Pacific plans to raise US$600 million via the issuance of bonds exchangeable for Cathay Pacific shares.

Swire Pacific, a major Cathay Pacific shareholder, plans to issue 4.70 billion Hong Kong dollars worth of zero-coupon exchangeable bonds that can be converted into up to 356.6 million Cathay Pacific shares, according to a filing late Tuesday. These shares represent about 5.9% of the airline's total issued shares, it said.

Swire Pacific set the initial exchange price at HK$13.18 a Cathay Pacific share, which represents a 2.9% premium to Cathay Pacific's last closing price.

This follows Swire's announcement in March that it sold part of its stake in the airline, raising US$230 million as working capital.

Write to Tracy Qu at [e-mail]

(END) Dow Jones Newswires

06-09-26 2145ET