New Issue: Qimonda prices upsized $217.6 million 6.75% convertible senior notes due 2013, up 35%

By E. Janene Geiss

New York, Feb. 8 - Qimonda AG priced an upsized $217.6 million in senior unsecured convertible bonds due 2013 with a 6.75% coupon and 35% initial conversion premium on Thursday after the market close.

The deal came in with a coupon cheaper than talk, which had been 6% to 6.5% coupon, and a conversion premium at the rich end of talk of 30% to 35%.

Qimonda increased the planned size to convertible into 30 million American Depository Shares from the initial 25 million ADSs.

Citigroup, Credit Suisse and Deutsche Bank are joint bookrunners of the Securities and Exchange Commission-registered transaction, which was sold through subsidiary Qimonda Finance LLC.

There is a $30.47 million greenshoe. The greenshoe was raised to cover 4.2 million ADS from the original 3.75 million.

The conversion price is $7.2549, a 35% premium over the reference price of $5.374. The ADSs closed at $4.97 on Feb. 7.

The bonds have call protection for three years, and then are callable subject to a 150% hurdle.

The bonds have non-standard takeover protection based on time.

Qimonda is making a concurrent offering of 20 million ADSs as a stock borrow facility.

Qimonda is a Munich, Germany-based semiconductor memory products producer. The company plans to use the proceeds for general corporate purposes.

Issuer: Qimonda Finance LLC (Qimonda AG)

Issue: Convertible senior notes

Amount: $217.647 million

Greenshoe: $30.47 million

Maturity: March 22, 2013

Coupon: 6.75%

Price: Par

Yield: 6.75%

Conversion premium: 35%

Conversion price: $7.2549

Conversion ratio: 137.8379

Call: After three years, subject to 150% hurdle

Bookrunners: Citigroup, Credit Suisse and Deutsche Bank

Distribution: SEC-registered

Pricing date: Feb. 7

Settlement date: Feb. 13

Talk: 6%-6.5% talk, 30-35% conversion premium

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.