Xinyuan Real Estate's (NYSE: XIN ) coffers are soon to be heavier following a deal with a privately held investment company. Xinyuan announced that it is to receive $108.6 million from TPG by selling a mix of convertible notes and common stock. For its money, the investment concern will get $75.8 million in aggregate principal amount of convertible notes maturing in 2018 with an initial coupon of 5%, plus nearly $33 million worth of common shares.
The former will be convertible to stock at an initial conversion price of $6.00 per one Xinyuan American depositary share. Meanwhile, the common shares are to be issued at $5.48 per ADS. All told, assuming full conversion of the notes and the amount of common shares, TPG will end up holding 18.6 million ADSes.
By virtue of the size of its stake, TPG will be enabled to nominate one director to the Chinese real estate firm's board.
Xinyuan said it will use the proceeds of the deal for acquisitions and "general corporate purposes to support further development of the Company."
At the moment, Xinyuan has just under 71.3 million ADSes outstanding. They most recently closed at $5.80 per share.