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1208 MMG News Story

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MMG seeks $1.6 billion via share placement and convertible bond sale, term sheet shows (updated)

UPDATE 1-MMG seeks $1.6 billion via share placement and convertible bond sale, term sheet shows

Adds more details from term sheet throughout

- MMG Ltd 1208.HK is seeking to raise about $1.6 billion through a new share placement and a convertible bond sale, according to a term sheet seen by Reuters on Monday, as the Hong Kong-listed global mining company looks to repay debt and fund growth.

Here's more information from the sheet:

  • The company is offering about $800 million of new shares at HK$8.86 to HK$9.15 ($1.17) each, the term sheet showed. That is a discount of 6.1% to 9.0% to its last close of HK$9.74 on June 15.

  • MMG is also selling $800 million of U.S. dollar zero-coupon convertible bonds due 2027, according to the term sheet. Convertible bonds are debt that can later be swapped for shares.

  • The proceeds will refinance shareholder and external loans, fund existing projects, expansion plans, possible acquisitions and investments, and add to working capital, the term sheet showed.

($1 = 7.8343 Hong Kong dollars)


(Reporting by Yantoultra Ngui in Singapore; Editing by Emelia Sithole-Matarise, Kirsten Donovan)

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