Swire Pacific Finance Appoints Joint Bookrunners For Exchangeable Bond Buyback

Swire Pacific and Swire Pacific B said Swire Pacific Finance has appointed joint bookrunners to help solicit interest from eligible bondholders willing to sell exchangeable bonds issued by the subsidiary and exchangeable into Cathay Pacific shares, according to ETNet. The joint bookrunners are J.P. Morgan Securities (Asia Pacific), Morgan Stanley International and The Hongkong and Shanghai Banking Corporation. If the group proceeds with a bond buyback, it may simultaneously place certain Cathay Pacific shares with independent third parties as part of an accelerated exchange transaction to speed up the bond-for-share exchange. Swire Pacific said the accelerated exchange transaction would not cause its stake in Cathay Pacific to fall further by more than the reduction that would have been expected under the bond exchange terms. If bonds representing 90% or more of the original principal amount are exchanged, bought back and cancelled under the accelerated exchange transaction, Swire Pacific Finance, as issuer, may exercise its right to redeem all outstanding bonds at par.