By William Gullotti
Buffalo, N.Y., July 20 – Giga-Byte Technology Co., Ltd. has priced $300 million of zero-coupon five-year overseas convertible bonds at par, according to a company notice on Thursday.
The convertibles may not be optionally called or put until the third anniversary date after issue, which falls on July 27, 2026.
When the bonds become callable at the company’s option, the redemption is subject to a 130% hurdle. Giga-Byte may also opt to redeem the bonds early at par plus a yield of 1% per annum, calculated semiannually, if less than 10% of the issue remains outstanding. The convertibles may also be called at any time for taxation reasons.
When bondholders become able to exercise put rights, the convertibles will be redeemed at par plus a yield of 1% per annum, likewise calculated semiannually. Put rights may also be exercised, paid in the same manner as an optional put, at any time if a change of control occurs or the company’s stock is delisted from the Taiwan Stock Exchange.
The convertible bonds will, if fully converted based on the NT$375 conversion price, result in a 3.766% dilution to the original shareholders. The notice also indicated that the impact from the dilution is limited.
Unless the bonds have been converted, or redeemed/repurchased and subsequently canceled, they will be redeemed at maturity at their principal amount plus a yield of 1% per annum, also calculated on a semiannual basis.
UBS AG, Hong Kong Branch is the international lead underwriter, with Yuanta Securities Co., Ltd. serving as local lead underwriter.
Proceeds will be used to obtain raw materials overseas.
The convertibles will be listed and traded on the Singapore Exchange.
Giga-Byte is a Taipei, Taiwan-based computer hardware company.
| Issuer: | Giga-Byte Technology Co., Ltd.
|
| Amount: | $300 million
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| Issue: | Unsecured overseas convertible bonds, third issue
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| Maturity: | July 27, 2028
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| Underwriters: | UBS AG, Hong Kong Branch (international lead), Yuanta Securities Co., Ltd. (local lead)
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| Trustee: | Citicorp International Ltd. (with Citibank, NA, London Branch acting as principal paying agent and conversion agent)
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption at maturity: | Par plus 1% per year, calculated semiannually
|
| Conversion price: | NT$375
|
| Fixed exchange rate: | US$1 equals NT$31.095
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| Call features: | Starting July 27, 2026, subject to 130% hurdle; at par plus 1% per year if at least 90% of the issue has been redeemed/converted/canceled; at any time for taxation reasons
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| Put options: | At the holder’s option on July 27, 2026 at par plus 1% per year; at any time at par plus 1% per year for a change of control, stock delisting from Taiwan Stock Exchange
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| Pricing date: | July 20
|
| Settlement date: | July 27
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| Stock symbol: | TWSE: GIGA
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