Bedding brand Everon (EVE) plans US$10mn bond issuance
Bedding brand Everon (EVE) plans US$10mn bond issuance
The management board of Everpia Joint Stock Company has approved the plan of issuing international convertible bonds worth US$10.1 million in South Korea this year.
The US dollar-nominated bonds are non-secured and will be issued to Rhinos Vietnam Convertible Bond Private Investment Fund No.4 under South Korea-based Rhinos Asset Management Co. Ltd in a private placement.
The minimum value is $100,000 per bond with a coupon rate of 1 per cent per year for a five-year maturity and interest payment in every six months. In case the bondholders do not exercise their right to convert, the issuer will pay the original debt at the compounded rate of 3.5 per cent per year.
Bondholders will be allowed to nominate one member to the management board for a five-year term.
Bonds will be fully or partially converted into EVE shares after one year from the date of issuance to one month before maturity. The conversion price is VND18,245 ($0.80) per share. Shares will be listed on the Ho Chi Minh Stock Exchange after the conversion.
According to the company, the capital raised from the bond issuance will be used to develop new products and expand business operations.
Everpia has chosen South Korean for issuing bonds because the interest rates in other primary bond markets, such as Singapore and Hong Kong, are higher, the company said.
The issuance will be carried out after receiving the approval of the State Securities Commission.
The net profit of the manufacturer of padding and bedding products plunged 43 per cent in 2017, reaching just VND51 billion.
Shares of Everpia (stock code EVE) are trading at some VND17,000 per share on the Ho Chi Minh Stock Exchange.
