REGAL Hotels International Holdings is to issue convertible cumulative redeemable preference shares worth US$125 million to raise funds to repay debts and use as working capital. The issue price of the preference shares will be $1,000 each. The shares will carry the right to a fixed cumulative preferential dividend of 5.25 per cent per annum. On conversion, holders will initially be entitled to 3,781 shares for each preference share at $2.0445, a 17.5 per cent premium to the $1.74 at which the shares closed on Thursday. Regal Hotels has appointed Jardine Fleming International to lead manage the issue. The shares will not be offered to the Hong Kong public.