look out! These companies choose to buy convertible bonds

 look out! These companies choose to buy convertible bonds

On November 20, Enjie shares (002812. SZ) said that on November 19, it held the 17th meeting of the Fourth Board of directors, deliberated and passed the proposal on not redeeming the Enjie convertible bonds in advance. The board of directors of the company decided not to exercise the early redemption right of Enjie convertible bonds and not to redeem the Engel convertible bonds in advance.

According to materials, in February 11, 2020, the company issued only 16 million convertible bonds, with a total value of 1 billion 600 million yuan, with a term of 6 years. The convertible bonds were listed on the market in February 28th, and entered into the stock exchange period in August 17th. The conversion period is from August 17, 2020 to February 11, 2026, the initial conversion price is 64.61 yuan, and then adjusted to 65.09 yuan.

The share price of Enjie shares has been advancing so fast that the closing price of Enjie shares in 15 consecutive trading days from October 29, 2020 to November 18, 2020 is no less than 130% of the current conversion price of Engel convertible bonds (i.e., 84.62 yuan / share), which triggers the redemption clause. In the end, Engel shares chose to give up. In fact, it is reasonable for Enjie shares to give up early redemption, because as of November 18, 2020, the latest scale of Enjie convertible bonds is 1.235 billion yuan. Although equity conversion has been started, the scale is still not small, and waiting for creditors to change shares is the best policy.

Similar to Enjie shares, there are many people who propose not to redeem in advance, such as kanglongda (603665. SH), AORUIJIN (002701. SZ), Tiantie (300587. SZ), Wencan shares (603348. SH), Wanshun new materials (300057. SZ), liantai environmental protection (603797. Sh), China Shipbuilding emergency (300527. SZ), Hongxiang shares (300427. SZ), etc.

For example, Longpan Technology (603906. SH), the company said on November 19 that the company had publicly issued 4 million convertible bonds on April 23, 2020, with a total amount of 400 million yuan. It was listed on May 19 and entered the share conversion period on October 29. Similarly, during the period from October 29, 2020 to November 18, 2020, the closing price of Longpan technology for 15 consecutive trading days was higher than the current equity conversion price of Longpan convertible bond of 9.48 yuan / share. According to the companys prospectus, the redemption clause of convertible bonds has been triggered.

In this context, Longpan technology held the 10th meeting of the third board of directors on November 18, deliberated and passed the proposal on early redemption of Longpan convertible bonds , which decided to exercise the early redemption right of the companys convertible bonds and redeem all the Longpan convertible bonds registered on the redemption registration date. Then, according to the companys prospectus and relevant regulations, the holders of Longpan convertible bonds may choose to continue trading in the bond market or convert them into shares of the company at the conversion price of 9.48 yuan per share before the market close on the redemption registration date. After the closing of the market on the redemption registration day, all the Longpan convertible bonds that have not been converted into shares will be frozen, trading and conversion will be stopped, and they will be forced to redeem. After the redemption, Longpan convertible bonds will be delisted in the Shanghai Stock Exchange.

At present, the stock price of Longpan technology is 26.57 yuan. As of November 17, 2020, the latest scale of Longpan convertible bonds is RMB 84.9291 million. Longpan technology reminds that there may be differences between the redemption price of convertible bonds and the market price of Longpan convertible bonds, and compulsory redemption may lead to the risk of investment loss. If the Longpan convertible bonds held by investors have been pledged or frozen, it is suggested to release the pledge and freeze in advance, so as to avoid the situation of being unable to trade and being forced to redeem.

Like Longpan technology, the companies that recently announced the launch of redemption include Haida group (002311. SZ), Tongkun shares (601233. SH), Zhende medical (603301. SH), gold cabinet (603180. SH), and Kesen Technology (603626. SH), etc.

Source: interface news Author: Zhao Yangge, editor in charge: Wang Xiaowu_ NF