New Issue: Macronix $140 million convertibles yield 3.55%, up 20%

By Ronda Fears

Nashville, Tenn., Jan. 31 - Macronix International Co. Ltd. sold $140 million of five-year convertible unsecured subordinated bonds at par with a coupon of 0.5% and 20% initial conversion premium. The premium redemption bonds have a yield-to-maturity of 3.55%.

Deutsche Banc Alex. Brown and Merrill Lynch & Co. were joint bookrunning lead managers of the Rule 144A issue, which priced at the cheap end of yield guidance of 3.1% to 3.6% and at the midpoint of premium guidance of 15% to 25%.

The Taiwan-based memory chip maker said proceeds would be used to purchase machinery and equipment.

Terms of the new deal are:

Issuer: Macronix International Co. Ltd.

Amount: $140 million

Greenshoe: $29.2 million

Lead Managers: Deutsche Banc Alex. Brown and Merrill Lynch

Maturity Date: Feb. 7, 2007

Coupon: 0.5%

Issue Price: Par

Yield-to-maturity: 3.55%

Redemption Price: $116.372

Conversion Premium: 20%

Exchange Rate: 34.98

Conversion Ratio: 1116.8582

Call: non-callable for three years, then with 130% trigger

Put: at Aug. 9, 2004 at 107.845

Settlement Date: Feb. 7

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