New Issue: Sony prices ¥220 billion 0% convertibles at 47.5% premium

New York, Dec. 1 - Sony Corp. priced ¥220 billion of five-year euro-yen zero-coupon convertible bonds at 102.5 and with a 47.5% initial conversion premium.

The Tokyo electronics company will use proceeds to fund capital investment to promote growth in semiconductors and "key" devices, including display devices. Sony added that the zero coupon supports its recently announced Transformation 60 program of reforms while the high conversion premium with a contingent conversion feature minimizes dilution until Transformation 60 has generated sufficient returns.

Bookrunners for the offering were Goldman Sachs International and Merrill Lynch International with Morgan Stanley as joint lead manager. The bonds were not offered in the United States.

Issuer:	Sony Corp.
Issue:	Euro-yen convertible bonds
Amount:	¥220 billion
Greenshoe:	¥30 billion
Maturity:	Dec. 18, 2008
Coupon:	0%
Price:	102.5
Redemption price at maturity:	100
Conversion premium:	47.5%
Conversion price:	¥5,605
Contingent conversion:	110%
Call:	Dec. 18, 2006 onward at par
Pricing date:	Dec. 1, after close
Settlement:	Dec. 18
Bookrunners:	Goldman Sachs International, Merrill Lynch International

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