MMG seeks $1.6B via share placement and convertible bond sale

MMG Ltd 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.

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 US 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)

(By Yantoultra Ngui; Editing by Emelia Sithole-Matarise and Kirsten Donovan)