, Sept. 19,
2012 /PRNewswire/ -- Ctrip.com International, Ltd. (Nasdaq: CTRP), a leading travel service provider of hotel accommodations, airline tickets, packaged tours and corporate travel management in
("Ctrip" or the "Company"), today announced the pricing of
in aggregate principal amount of convertible senior notes due 2017 (the "notes"). The notes were offered to qualified institutional buyers pursuant to Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"), and certain non-U.S. persons in compliance with Regulation S under the Securities Act. The Company has granted to one of the initial purchasers a 30-day option to purchase up to an additional
principal amount of notes solely to cover over-allotments, if any.
The notes will be convertible into Ctrip's American Depositary Shares ("ADSs"), each representing as of the date of this press release 0.25 of an ordinary share of Ctrip, based on an initial conversion rate of 51.7116 of the Company's ADSs per
principal amount of notes (which is equivalent to an initial conversion price of approximately
per ADS and represents an approximately 10% conversion premium over the closing trading price of the Company's ADSs on
September 18, 2012
, which was
per ADS). The conversion rate is subject to adjustment upon the occurrence of certain events. Holders of notes may convert their notes, at their option, in integral multiples of
principal amount, at any time prior to the close of business on the second business day immediately preceding the maturity date. Ctrip will not have the right to redeem the notes prior to maturity. Holders of the notes will have the right to require the Company to repurchase for cash all or part of their notes on
September 15, 2015
at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding,
September 15, 2015
The notes will bear interest at a rate of 0.50% per year, payable semiannually in arrears on
of each year, beginning on
March 15, 2013
. The notes will mature on
September 15, 2017
, unless previously repurchased or converted in accordance with their terms prior to such date.
Certain senior management and directors of Ctrip, including the chairman of the board of directors, chief executive officer, chief operating officer and chief financial officer, have agreed to purchase
aggregate principal amount of notes from the initial purchasers in this offering.
The Company intends to use a portion of the net proceeds of the offering to: (a) purchase, depending on interest, a certain amount of ADSs from purchasers of notes in privately negotiated transactions, (b) purchase, from time to time, additional ADSs pursuant to its share repurchase program following this offering, and (c) pay the associated cost of the convertible note hedge transaction, after such cost is partially offset by the proceeds to the Company from the sale of the warrant transaction, both transactions as described below. The Company plans to use the remainder of the net proceeds from this offering for other general corporate purposes, including working capital needs and potential acquisitions of complementary businesses (although it is not currently negotiating any such acquisitions).