By Rebecca Melvin
New York, Oct. 8 - Elpida Memory Inc. issued ¥60 billion five-year convertible bonds with a 0.5% coupon and a 32% initial conversion premium, according to a news release.
The estimated conversion price of the bonds, with a par value of ¥1 million per bond, is ¥1,177.
The Regulation S offering was sold via an underwriter syndicate with Daiwa Securities Capital Markets Co. Ltd. acting as the lead manager.
The unsecured bonds will be non-callable until Dec. 3, 2012 and then provisionally callable if Elpida shares are 130% of the conversion price for 20 continuous trading days.
Holders can put the bonds after three years from Aug. 19 to Aug. 30, 2013 and in the event of organizational restructuring or delisting.
Elpida plans to use about one-third of the proceeds for capital expenditures of semiconductor manufacturing equipment, with the remainder earmarked for research and development and repayment and redemption of outstanding interest-bearing debt.
Tokyo-based Elpida is a supplier of dynamic random access memory.
| Issuer: | Elpida Memory Inc.
|
| Issue: | Convertible bonds
|
| Amount: | ¥60 billion
|
| Maturity: | Oct. 26, 2015
|
| Lead manager: | Daiwa Securities Capital Markets Co. Ltd.
|
| Coupon: | 0.5%
|
| Price: | Par of ¥100 plus 2.5%
|
| Conversion premium: | 32%
|
| Conversion price: | ¥1,177
|
| Call protection: | Non-callable until Dec. 3, 2012, then provisionally callable at 130% price hurdle
|
| Put option: | From Aug. 19, 2013 to Aug. 30, 2013 and in the event of organizational restructuring or delisting
|
| Pricing date: | Oct. 7
|
| Distribution: | Regulation S
|
| Stock symbol: | Tokyo: 6665
|
| Stock reference price: | ¥892
|
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