Published on 11/19/2003 in the Prospect News Convertibles Daily.
New Issue: Kawasaki Heavy Industries ¥25 billion convertible yields -0.36%, up 57%
By Ronda Fears
Nashville, Nov. 19 - Kawasaki Heavy Industries Ltd. sold ¥25 billion of seven-year 0% convertible bonds at 102.5 for a yield to maturity of negative 0.36% with a 57% initial conversion premium, via sole bookrunner UBS Investment Bank.
The Regulation S deal sold at the aggressive end of price talk that put the premium between 47% and 57%.
There will be a conversion price adjustment in the event of common dividend increases over 20% per year.
Terms of the convertible offering are:
| Issuer: | Kawasaki Heavy Industries Ltd.
|
| Issue: | Convertible bonds
|
| Lead manager: | UBS Investment Bank
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| Amount: | ¥25 billion
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| Maturity: | Sept. 30, 2010
|
| Coupon: | 0%
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| Price: | 102.5
|
| Redemption price: | 100
|
| Yield to maturity: | -0.36%
|
| Conversion premium: | 57%
|
| Conversion price: | ¥182.00
|
| Conversion ratio: | 5,494.00
|
| Call: | Non-callable for 3 years, then with 130% hurdle
|
| Put: | On Sept. 28, 2007, at 100
|
| Rating: | Moody's: Baa3
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| Pricing date: | Nov. 19
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| Settlement date: | Dec. 8
|
| Distribution: | Regulation S
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