On January 22, 2018, Fosun International Limited (0656.HK, “Fosun International” or the “Company”) has successfully priced a USD700 million dual-tranche senior unsecured notes offering, including a tap to its existing 5.375% 2020 senior notes and a new 5-year non-callable 3-year senior notes. 

The dual tranche notes are issued by Fortune Star (BVI) Limited, an indirect wholly-owned subsidiary of Fosun International, and are both rated Ba2 from Moody’s and BB from S&P. The proceeds would be used to refinance some of the Company’s existing indebtedness and for working capital and general corporate purposes. 

Fosun International announced the initial price guidance of “100.50” and “6.125% area” for the tap and new issuance, respectively, followed by a one-day accelerated bookbuilding process. The transaction received strong demand from Asian investors with the orderbook reaching US$800 million within the first three hours of bookbuilding. As European accounts placed their orders, the orderbook continued to develop and was over USD1.9 billion by 6pm HKT.

The strong investor demand allowed the Joint Bookrunners to revise the final price guidance to “101.00 (The Number)” for the tap and “5.950% (The Number)” for the new issuance, and priced the deal at 101.00 for the tap with an reoffer yield of 4.992% and size of USD250 million and 5.950% at par with a size of USD450 million for the new issuance. Based solely on indications of interest at the offering price, the final orderbook was over USD1.4 billion.

Credit Suisse, China CITIC Bank International, CNCB HK Capital, and Fosun Hani acted as Joint Global Coordinators on the transaction and Credit Suisse, China CITIC Bank International, CNCB HK Capital, Fosun Hani, and ABC International acted as Joint Lead Managers and Joint Bookrunners.