By Rebecca Melvin
New York, Sept. 8 - Unicharm Corp. priced ¥70 billion of 0% convertible bonds in two tranches, including ¥30 billion of three-year bonds and ¥40 billion of five-year bonds, according to a news release.
The 0% bonds have an initial conversion premium of 19.12%, which was toward the cheap end of premium talk of 18% to 28%.
There is an over-allotment option for up to a further ¥4.5 billion of bonds associated with the 2013 offering and up to a further ¥6 billion in bonds for the 2015 offering.
The shorter-dated paper is non-callable for two years and then provisionally callable at a 120% pricing hurdle; and the 2015 bonds are non-callable for three years and then provisionally callable at a 120% price hurdle.
Morgan Stanley & Co. International plc and Nomura International are the joint bookrunners, with Morgan Stanley acting as stabilizing manager for the 2013 paper and Nomura stabilizing the 2015 paper.
The 2013 bonds were offered at 103, and the 2015 bonds were offered at 102.5.
Proceeds are earmarked to repay short-term borrowings amounting to ¥60 billion, which were used to fund the Unicharm PetCare acquisition following a cash tender offer in May and June, and the payment of capital gains tax, payable upon the merger as of Sept. 1.
Approval in-principle has been received to list the bonds on the Singapore Exchange Securities Trading Ltd.
Unicharm is a maker of fabrics used in sanitary products and disposable diapers and is based in Minato-ku, Japan.
| Issuer: | Unicharm Corp.
|
| Issue: | Convertible bonds
|
| Amount: | ¥70 billion
|
| Coupon: | 0%
|
| Conversion price: | ¥11,650
|
| Conversion premium: | 19.12%
|
| Bookrunners: | Morgan Stanley & Co. International plc and Nomura International
|
| Distribution: | Regulation S
|
| Pricing date: | Sept. 7
|
| Reference stock price: | Tokyo: ¥9,780
|
|
|
| 2013 tranche
|
| Amount: | ¥30 billion
|
| Greenshoe: | ¥4.5 billion
|
| Maturity: | June 10, 2013
|
| Price: | 103
|
| Call protection: | For two years, until June, 10, 2012, then provisionally callable at 120% hurdle
|
|
|
| 2015 tranche
|
| Amount: | ¥40 billion
|
| Greenshoe: | ¥6 billion
|
| Maturity: | June 10, 2015
|
| Price: | 102.5
|
| Call protection: | For three years until June 10, 2013, then provisionally callable at 120% hurdle
|
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