Regal to raise US$125m

REGAL Hotels International will raise US$125 million through a convertible cumulative redeemable preference share issue.

The preference shares will be issued at US$1,000 each and will carry a fixed cumulative preferential dividend at the rate of 5.25 per cent per annum.

Each preference share will have a right of conversion into ordinary shares at an initial conversion price of HK$2.0445 a share, subject to adjustment, at a fixed exchange rate of HK$7.73 to US$1.

Full conversion of the preference shares will result in the issue of about 472.6 million ordinary shares, representing about 18 per cent of the existing issued share capital.