Sole bookrunner Bank of America Merrill Lynch announced guidance on the new bond at 12.75% for what is now a three year Reg S transaction.
After getting feedback from the market, China Properties decided on a US dollar denominated deal instead of its original proposal of an RMB-denominated issue, according to a statement posted on the Hong Kong Stock Exchange.
Bankers on the deal declined to comment further on why the switch was made. Yesterday thebookrunners announced initial guidance at 11.5% for a three year dim sum.
Bankers on the deal said that the issuer’s $150m 13.5% five year non call three, which matures in 2018 and is callable in 2016, is the nearest comparable. The bond was trading at 101.25 on Wednesday morning. Bankers are also looking at China South City’s $125m 13.5% 2017s, which was trading at 115.
The size of the deal is yet to be decided and bankers said that the transaction will price on Wednesday. Standard and Poor's has given the new notes a proposed issue rating of B-.