GP Industries Limited has entered into subscription agreements with investors for the issuing of fixed rate resetting perpetual subordinated bonds of up to US$11 million ($14.1 million).
The bonds, which will be issued in the denomination of US$0.5 million and integral multiples of US$100,000 in excess thereof, will be perpetual and will confer a right to receive distribution payments at a rate of 9.5% per annum with the first distribution rate reset falling on Oct 15, 2025. Subsequent rests are expected to occur on the second reset date and every one year thereafter.
The distribution will be payable semi-annually in arrears in equal instalments.
The net proceeds arising from the issue of the bonds, after deducting issue expenses, will be used for general corporate and working capital purposes.
Currently, Brian Li Yiu Cheung, Waltery Law Wang Chak Grace Lo Kit Yee, directors of the group, have individually agreed to subscribe for US$4,000,000 in aggregate principal amount of bonds.
The bonds are expected to be issued on or around Oct 15, no later than Nov 30. The bonds will not be listed on any stock exchange.
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No lead manager, co-manager, placement agent or underwriter has been appointed for the issue of the bonds.
Shares in GP Industries closed 1.5 cents higher, or up 3.06%, at 50.5 cents on Sept 30.
