By Ronda Fears
Nashville, Tenn., Dec. 19 - Korea Telecom sold $1.32 billion of five-year convertible unsecured unsubordinated notes at par to yield 0.25% with a 20% initial conversion premium in the Rule 144A market, via joint book-running lead managers Merrill Lynch & Co. and UBS Warburg.
There is a special clause in the security whereby the issuer will not protect bondholders for dividend increases up to a maximum of 20% per year over a reference level of 600 won per share. Any excess over and above this will lead to a downward adjustment of the conversion price equivalent to what would result if the excess were reinvested in additional ordinary shares of the issuer.
Korea Telecom said proceeds of the offering would be used to buyback shares from the Republic of Korea.
Term of the deal are:
Issuer: Korea Telecom
Amount: $1.32 million, representing 27.5 million shares
Lead Managers: Merrill Lynch and UBS Warburg
Maturity Date: Jan. 4, 2007
Coupon: 0.25%
Issue Price: par
Yield: 0.25%
Conversion Premium: 20%
Conversion Price: US$23.96, or won 61,922.22
with an exchange rate of US$1=KRW 1,292.20 (1 ADS= 0.5 local share)
Conversion Ratio: 20.8681
Call: non-callable for three years
Put: in year three at par
Rating(s): Moody's: Baa2
| S&P: BBB+
|
| Settlement Date: | Jan. 4
|
|
|
| End
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
