Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), a leading travel service provider of accommodation reservation, transportation ticketing, packaged tours and corporate travel management inChina (“Ctrip” or the “Company”), today announced the completion of the offering of US$900 million in aggregate principal amount of convertible senior notes due 2022 (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 the initial purchasers a 30-day option to purchase up to an additional US$75 million principal amount of the Notes solely to cover over-allotments, if any. The Notes will be convertible into Ctrip’s American depositary shares (“ADSs”), each representing 0.125 of an ordinary share of Ctrip, at the option of the holders, based on an initial conversion rate of 15.2688 of the Company’s ADSs per US$1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately US$65.49 per ADS and represents an approximately 42.5% conversion premium over the closing trading price of the Company’s ADSs on September 6, 2016, which was US$45.96 per ADS). The conversion rate for the Notes is subject to adjustment upon the occurrence of certain events.
The Notes will bear interest at a rate of 1.25% per year, payable semiannually in arrears on March 15 and September 15of each year, beginning on March 15, 2017. The Notes will mature on September 15, 2022, unless previously repurchased, redeemed or converted in accordance with their terms prior to such date.
The Company also closed the concurrent offering of 28,500,000 ADSs (the “ADS Offering”) at US$45.96 per ADS onSeptember 12, 2016. Ctrip has granted the underwriters in the ADS Offering a 30-day option to purchase up to an additional 4,275,000 ADSs in connection with the ADS Offering to cover over-allotments, if any.
Concurrently with the closing of the Notes Offering, the Company closed a private placement of US$25 million aggregate principal amount of convertible notes due 2022 with a subsidiary of The Priceline Group Inc. (“Priceline”), Ctrip’s existing shareholder, pursuant to an exemption from registration with the U.S. Securities and Exchange Commission (the “SEC”) under Section 4(a)(2) of the Securities Act. In addition, concurrently with the ADS Offering, the Company closed private placements of Ctrip’s ordinary shares with the respective subsidiaries of Baidu, Inc. (“Baidu”) and Priceline, Ctrip’s existing shareholders, at an aggregate investment amount of US$100 million and US$25 million, respectively, pursuant to exemptions from registration with the SEC under Regulation S and Section 4(a)(2) of the Securities Act, respectively.
The Company plans to use the net proceeds from the Notes Offering and the concurrent private placement of convertible notes to Priceline for organic growth of Ctrip’s business, acquisitions of and investments in complementary businesses and assets, and other general corporate purposes. (Original Source)
Shares of Ctrip International closed yesterday at $44.32, up $0.18 or 0.41%. CTRP has a 1-year high of $57.36 and a 1-year low of $30.12. The stock’s 50-day moving average is $45.35 and its 200-day moving average is $43.62.
On the ratings front, CTRP has been the subject of a number of recent research reports. In a report issued on September 7, Brean Murray Carret analyst Fawne Jiang reiterated a Buy rating on CTRP. Separately, on September 6, Nomura’s Jialong Shi reiterated a Buy rating on the stock and has a price target of $57.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Fawne Jiang and Jialong Shi have a total average return of 8.1% and 10.1% respectively. Jiang has a success rate of 58.6% and is ranked #178 out of 4143 analysts, while Shi has a success rate of 66.7% and is ranked #812.
The street is mostly Bullish on CTRP stock. Out of 7 analysts who cover the stock, 7 suggest a Buy rating . The 12-month average price target assigned to the stock is $54.50, which implies an upside of 23.0% from current levels.
Ctrip.com International Ltd. engages in the provision of travel-related services. It provides hotel accommodations, airline tickets, packaged tours, corporate travel management services, property management systems, and advertising services.