Machinery company Lonking Holdings issued $135 million worth of convertible bonds CB on Thursday night. The company raised the cash in an attempt to proactively manage its balance sheet in view of an outstanding CB that is likely to be redeemed next year.
The company's prior debt commitments helped to shape the structure of its latest CB. In 2007, the company issued a $289 million CB that is puttable in April next year. Since those bonds are so out-of-the-money it is likely that they will be redeemed. In the past year, when bonds were trading at extremely low prices, the company bought back a large chunk of the 2007 CBs, leaving approximately $150 million...
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