Carnival Group International Holdings Limited (SEHK:996) announced that it has entered into a placing agreement, on best effort basis, for private placement of direct, senior, unsubordinated, unconditional, and secured convertible bonds for gross proceeds of up to $200,000,000 on July 3, 2015. The bonds will carry a fixed coupon of 8% per annum, payable semi-annually in arrears in equal instalments of $200,000, and will mature in 2018. The bonds are convertible into 1,115,827,338 common shares of the company at a fixed conversion price of HKD 1.39 ($0.179239) per share.

After the conversion of the bonds, the investors will hold 7.3% of the issued share capital of the company as enlarged by the conversion. The company will receive net proceeds of $195,700,000 in the transaction after deducting agent commission and other expenses. The transaction will occur in three tranches.

The company will issue $30,000,000 in its first tranche, $100,000,000 in its second tranche, and $70,000,000 in its third tranche. The transaction is subject to certain conditions which have to comply by September 30, 2015. The securities have a hold period of 180 days from the date of issuance.

The securities will be issued at par. The conversion was made as per the agreement as $1 is equal to HKD 7.755.