Health yuan to be issued 700 million exchange of debt with the holding of the Pearl stock guarantee

The Health Yuan 12th announced that the board of Directors of the company approved the issue of a bill to exchange debts on 9th. Health Yuan will issue up to 6 years, 700 million yuan of the scale of the exchange of debt, to no more than 40 million shares of the pearl A-share to guarantee.　　This is the first negotiable bond issue in the history of China's securities. The health yuan holds nearly 43.3859% of the company's shares, the current proposed exchange of debt to the size of 700 million yuan, in accordance with the provisions of the exchange of debt, the issuance of the prospectus is not less than the price of the announcement of the 20th trading price of 70%.　　Assuming that according to the current average price of the latest pledge, the health yuan will take up about 40 million shares of the pearl A-share to guarantee. This exchange of debt may be exchanged in the future, the number of Li Bead Group A shares, depending on the future set of exchange prices, the setting of the exchange rate and exchangeable debt coupon interest is closely related, the issue of interest rates will be through the market inquiry way to determine,　　The release plan has clearly indicated that the future exchange rate will be in accordance with the prospectus announced before the 20 daily average float a certain proportion, so the health yuan to take out for the guarantee of the Pearl Group A shares will not be all ready for exchange, fundamentally will not affect the health of the Pearl Group's control status. The terms of this issue are designed for bond investors to exchange shares after 24 months of issuance.　　The Healthy yuan is still the only major shareholder of the Pearl Group and will not have any substantial impact on the Pearl group. This issue interest rate will be combined with the exchange price set through the market inquiry to determine, at the same time in the scheme set downward amendments, redemption terms and the terms of sale, security provisions, debt service protection measures and other provisions, health Yuan said it will take into account two listed companies, health Yuan shareholders,　　The interests of investors, such as shareholders and exchangeable debt holders. This issue of the exchange of debt system is listed in the Shenzhen stock market as a guarantee and preparation for the exchange, but also planned to be issued and listed in Shenzhen. Therefore, investors cocoa open their own securities account card in the future of the online purchase and transaction. The former shareholders of the group have preferential placing rights. [Page] Health yuan this time the exchange of debt raised funds will be used for the United States meropenem raw materials and preparations of the COS and FDA certification, reimbursement of some bank loans and supplementary liquidity. The United States Meropenem Health Yuan 2001 public offering to raise funds to invest in the key projects, 2001 after the investment in place to make the company the United States Meropenem products successfully listed, then the United States meropenem raw materials export foreign non-standard market, its preparation times can be in the domestic sales steadily increase,　　In recent years, the health yuan to bring about 100 million yuan of net profit. Health Yuan said, with the United States Meropenem in Europe, the United States and other norms market patent expired, the Health Yuan plan will be the United States meropenem raw materials and formulations exported to Europe and the United States, such as normative market, on the one hand, because of the standard market meropenem raw materials and dosage of agents, and price stability On the other hand, it can improve the production technology and quality management level of our country and healthy Yuan pharmacy, which is more beneficial to our country and the company system.Agent products exports, but also conducive to future health yuan in the pharmaceutical field of international cooperation.　　In response to future capital tightening and the increased probability of interest rates rising, health yuan after the success of the issue, will be part of short-term loans into long-term bonds, conducive to the stability of cash flow, while supplementing a certain amount of liquidity, but also conducive to health yuan other products to a broader market area sales, increase the existing product sales outlets and sales scale. Health Yuan said that for the shareholders of the health yuan, because the exchange of debt has the right to swap shares, bond interest rate of relatively free bonds will be lower, saving the cost of interest costs in the financial costs. For the Health Yuan, the successful issuance of short-term loans for six months or one year into long-term bonds has stabilized the cash flow of the health yuan, thus reducing the potential financial risk of health dollars. For the shareholders of the fund, this issue increased the number of investment can be the equivalent of indirect investment in the shares.　　For other potential investors, this exchange bond issue will make the securities market to add a new investment channels, to achieve a low risk under the premise, and then obtain high income investment targets, conducive to the potential investors to do asset allocation.　　Health Yuan in the announcement that the biggest risk of the exchange of debt is in the future issue 36 months after the return period, if there is similar to the 2008 stock market a significant unilateral fall, will make the health yuan to face the pressure of the sale.　　In this regard, the health yuan coping style is: First, in the design of the project, the entire six-year exchange of debt, the return period is in the distribution completed three years later, the health yuan in the first three years will not be back to sell pressure, according to the current development situation, health yuan three years after the cash flow will be better. The second is the health yuan and the pharmaceutical industry, the annual expansion of the market capacity will be with the country's medical system reform and expansion, health yuan and will also increase with the market capacity and strengthen sales management and sales team building increased sales, and with the company's sales management system continues to deepen,　　The market share will continue to increase, to ascertain the increase in the income and profits of the health Yuan and the Pearl River, and the stable cash flow will be the most fundamental protection of the principal and interest of the bondholders in the future.　　The third is that the boost will directly support the share price so as to support the exchange of debt holders to reduce the prospect of a sharp unilateral fall in the future capital market.　　Four is the health yuan to complete the exchange of debt, the bank will also apply for a larger amount of loans for the future at least three years after the release of the potential for the sale of pressure.　　What is exchangeable debt?　　A convertible bond is a company bond which is issued by the shareholders of a listed company according to law and can be exchanged into shares of a listed company held by the shareholder in accordance with the agreed conditions within a certain period of time. Exchangeable bonds and current market convertible bonds, corporate bonds are different, convertible bonds for listed companies directly issued, in the future can be converted into a listed company's own shares; corporate bonds can be issued by listed companies, but also other qualified companies to issue, and the exchange of bonds only listed companies shareholders haveConditional issue, because in the process of issuing, must use the stock of listed company to carry on pledge guarantee and reserve exchange. Compared to convertible bonds, the exchange of debt is due to the issuance of shareholders of listed companies, compared with the advantages of not thin shares of the company, convertible debt investors can be converted into a listed company's own shares in the future, but the exchange of debt system investors in the future into the shares of listed companies (issuer subsidiaries), the similarity is that both are embedded options,　　The future can be converted or exchanged for a listed company's shares, can be set similar to the downward Amendment clause, and can set up redemption and sale of funds why to issue exchangeable debt? Compared with corporate bonds, exchangeable bonds have the same means as exchange debts, but the difference is that they can exchange debts and have the power of exchanging shares, and their debts contain the price of similar stock exchange certificates.