Swire Pacific (HKG:0019, HKG:0087) expects to adjust the exchange price of its HK$4.7 billion zero-coupon exchangeable bonds due 2027 after Cathay Pacific Airways (HKG:0293) declared an interim dividend.
Pursuant to the conditions of the issue in June, the price will be lowered to HK$12.93 per Cathay Pacific share from HK$13.18, according to a Wednesday filing on the Hong Kong bourse. With a record date of Sept. 4, the adjustment will take effect the next day.
The conglomerate expects the full exchange of the bonds to increase to 363.5 million Cathay Pacific shares from 356.6 million shares, if the outstanding principal amount stays at HK$4.7 billion.