By Ronda Fears
Nashville, Oct. 29 - ST Assembly Test Services Ltd. sold an upsized $115 million of premium redemption convertible notes to yield 4.25% with a 27% initial conversion premium, via joint bookrunners Deutsche Bank Securities and Morgan Stanley.
The issue sold aggressively outside yield guidance which put the redemption price at 126.46 to 129.58 for a 4.75% to 5.25% yield-to-maturity, and at the midrange of premium talk of 25% to 30%. It was upsized from $100 million.
ST Assembly Test Services also sold 76 million ordinary shares at a 9% discount, fetching another $115 million. The stock had been expected to price at an 8% to 13% discount.
In addition, on Wednesday the company reported a third quarter profit and forecast higher fourth quarter sales.
The Singapore-based, state-controlled semiconductor tester posted a net profit of $800,000, or 1c per diluted ADS, for third quarter, versus a loss of $17.6 million, or 18c per diluted ADS, in third quarter 2002. Revenues were up 55% to $97.9 million.
For fourth quarter, the company said it expects a 5% to 10% increase in sales with profits of around $5 million.
Terms of the deal are:
| Issuer: | ST Assembly Test Services Ltd.
|
| Reference shares: | ST Assembly Test Services Ltd. ordinary shares or ADS
|
| Issue: | Convertible unsubordinated notes
|
| Lead managers: | Deutsche Bank Securities and Morgan Stanley
|
| Amount: | $115 million
|
| Greenshoe: | $15 million
|
| Maturity: | 2008
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 123.4
|
| Yield: | 4.25%
|
| Conversion premium: | 27%
|
| Conversion price: | S$3.05 or US$1.75
|
| Fixed FX rate: | S$1.7403=U.S.$1
|
| Conversion ratio: | 570.5902
|
| Call: | Non-callable for 3 years, then with 130% hurdle
|
| Put: | In year 4 at 118.32
|
| Price talk: | Redemption price of 126.46-129.58 for 4.75-5.25% yield, up 25-30%
|
| Pricing date: | Oct. 29
|
| Settlement: | Nov. 5
|
| Distribution: | Regulation S
|
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