Chicago, March 11 – Kansai Paint Co., Ltd. listed ¥100 billion of new zero-coupon convertible bonds due in 2029 and 2031, according to an offering document.
The company sold a ¥60 billion tranche at 103.5.
A ¥40 billion tranche priced at 102.5.
Listed above were the offer prices; the issue prices were 101 and par, respectively.
Each bond comes with stock acquisition rights. For the 2029 bonds, the rights may be exercised from March 22 to Feb. 22, 2029. For the 2031 bonds, the rights may be exercised from March 22 to Feb. 21, 2031. The stock may be acquired at an initial conversion price of ¥2,771 per share.
Morgan Stanley & Co. International plc was the active bookrunner. Nomura International plc, Daiwa Capital Markets Europe Ltd. and Citigroup Global Markets Ltd. were passive bookrunners.
Approximately ¥40 billion of the proceeds will be used for bolt-on mergers and acquisition, including the acquisition of Weilburger through Kansai Helios Coatings GmbH. Around ¥20 billion will be used for research and development and ESG capital investment. The remaining ¥40 billion will be used to repurchase shares.
Kansai is an Osaka-based chemical company.
| Issuer: | Kansai Paint Co., Ltd.
|
| Amount: | ¥100 billion
|
| Issue: | Convertible bonds
|
| Bookrunners: | Morgan Stanley & Co. International plc (active), Nomura International plc, Daiwa Capital Markets Europe Ltd. and Citigroup Global Markets Ltd. (passive)
|
| Trustee: | Law Debenture Trust Corp. plc
|
| Counsel to issuer: | Anderson Mori & Tomotsune
|
| Counsel to underwriters: | Gaikokuho Kyodo-Jigyo Horitsu Jimusho Linklaters
|
| Trade date: | Feb. 21
|
| Settlement date: | March 8
|
| Distribution: | Regulation S
|
| Stock symbol: | Tokyo: 4613
|
| Stock price: | ¥2,309 on Feb. 21
|
| Market capitalization: | ¥514.35 billion
|
|
|
| 2029 bonds
|
| Amount: | ¥60 billion
|
| Maturity: | March 8, 2029
|
| Coupon: | 0%
|
| Price: | 103.5
|
| Initial conversion price: | ¥2,771 per share
|
| Call features: | From March 8, 2028 to Nov. 24, 2028
|
| ISIN: | XS2771423170
|
|
|
| 2031 bonds
|
| Amount: | ¥40 billion
|
| Maturity: | March 7, 2031
|
| Coupon: | 0%
|
| Price: | 102.5
|
| Initial conversion price: | ¥2,771 per share
|
| Call features: | March 7, 2030 to Nov. 25, 2030
|
| ISIN: | XS2771423170
|
|
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