By Rebecca Melvin
New York, Jan. 19 - Epistar Corp. priced US$280 million of five-year 0% euro-convertible bonds at US$100,000 par with a 30% initial conversion premium, according to a news release.
The light-emitting diode chipmaker said the bonds' conversion price was set at NT$132.6, or US$4.57, compared with the company's Jan. 18 closing price of NT$102.00.
Closing of the bond issue is set for Jan. 27, with maturity Jan. 27, 2016.
The bonds are non-callable for three years and then are provisionally callable at par subject to a closing share price of at least 130% of the conversion price for 20 out of 30 consecutive trading days. Holders can put the bonds at par after three years. There is also change-of-control protection.
Proceeds will be used to acquire equipment and machinery to increase capacity and to repay existing U.S. dollar-denominated debt.
Barclays Bank plc is lead underwriter, with Horizon Securities Corp. acting as domestic financial adviser.
Epistar is an LED chipmaker based in Hsinchu, Taiwan.
| Issue: | Epistar Corp.
|
| Issue: | Euro convertible bonds
|
| Amount: | $280 million
|
| Maturity: | Jan. 27, 2016
|
| Underwriter: | Barclays Bank plc
|
| Coupon: | 0%
|
| Price: | Par, $100,000
|
| Redemption price: | Par
|
| Yield: | 0%
|
| Initial conversion premium: | 30%
|
| Conversion price: | NT$132.6 (Exchange rate $1 = NT$29.0240)
|
| Call: | After three years subject to 130% hurdle
|
| Put: | After three years
|
| Change-of-control protection: | Yes
|
| Pricing date: | Jan. 18
|
| Settlement date: | Jan. 27
|
| Reference price: | NT$102.00
|
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