China Huiyuan Juice will issue 4% convertible bonds due in 2016

China Huiyuan Juice will issue 4% convertible bonds due in 2016

China Huiyuan Juice Group is to refinance a portion of its debt by completing a US$150m bond issue.

The soft drinks firm said yesterday (10 April) that it will issue 4% convertible bonds due in 2016 and has granted an option to lead managers Credit Suisse (Hong Kong). The bonds will be converted into around 228.1m shares at a price of HK$6.81 (US$0.88) per share.

The proceeds are expected to amount to around $147.5m and will be used for refinancing existing debts and general working capital purposes, the firm said.

Last month, China Huiyuan Juice recorded a 15% decline in profits for 2010. EBITDA however, soared by 244% to CNY550.3m.