By Rebecca Melvin
New York, Oct. 30 – Hon Hai Precision Industry Co. Ltd. priced $500 million of 0% unsecured overseas convertible bonds due 2022 at par with an initial conversion premium of 30%, according to a news release.
The new bonds will be convertible at NT$145.00 per Hon Hai common share.
The bonds are non-callable for three years and then provisionally callable subject to price hurdle of 130% for 20 consecutive trading days.
Holders cannot put the bonds except for a change of control.
Proceeds will be used to buy raw materials overseas and to save interest expense.
Hon Hai Precision is a Tu-cheng, Taiwan, manufacturer of computer connectors, cable assemblies and enclosures.
| Issuer: | Hon Hai Precision Industry Co. Ltd.
|
| Issue: | Unsecured overseas convertible bonds
|
| Amount: | $500 million
|
| Maturity: | Nov. 6, 2022
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion premium: | 30%
|
| Conversion price: | NT$145.00 (exchange rate of US$/NT$ = 30.192)
|
| Calls: | Non-callable for three years, and then provisionally callable subject to a 130% price hurdle
|
| Put: | No puts, except for change of control
|
| Announcement date: | Oct. 30
|
| Stock symbol: | Taiwan: 2317
|
| Stock reference price: | NT$111.50 as of Oct. 30 close
|
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