China's ZTO Express skids on planned convertible debt deal

ZTO Express (Cayman)

24/08/2022 15:53

** U.S.-listed shares ZTO Express  ZTO.N  down 9.0% at
$24.34 early Weds as Chinese delivery firm looks to raise
capital
    ** Shares fall to 4-mth low of $22.91 in early trade; they
are on track for biggest one-day pct decline since Mar 11
    ** Co offering $870 mln 5-yr convertible bonds (CBs) with
over-allotment option of $130 mln  urn:newsml:reuters.com:*:nPn8YKv5ha
    ** It plans to use portion of net proceeds to pay cost of
capped call transactions, rest to grow its logistics operations,
invest in logistics ecosystem and for working capital
    ** Sole bookrunner Goldman Sachs marketing CBs with 1%-1.5%
coupon, 30%-35% convertible premium, IFR reports  urn:newsml:reuters.com:*:nIfp2V6ZrG
    ** ZTO had ~$23 bln market value through Tues close, per
Refinitiv data
    ** With move on the session, U.S.-listed shares off ~13% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))