TCL Multimedia Technology Holdings, the world's biggest television maker by unit sales, plans to raise US$140 million by selling convertible bonds to repay debt.
Deutsche Bank had secured subscription for at least US$300,000 worth of the issue, and the bank may find other independent buyers for the bonds, TCL Multimedia said.
Shares of the company, a unit of TCL Corp, rose as much as 18 per cent yesterday before closing at 57 HK cents, up 3.64 per cent.
'The bond issue is good news for TCL Multimedia, which needs money to keep on running,' said William Bao Bean, a partner at Softbank China and India.
The bond sale is the company's second fund-raising deal after a proposal last Thursday to raise HK$780.6 million by selling rights shares.
The five-year bonds pay annual interest of 4.5 per cent and can initially be swapped into shares at 40 HK cents each. The conversion price will be adjusted to between 30 HK cents and 60 HK cents, based on the stock's performance during the 26 trading days after the rights shares sale.