GlobalWafers talks $1 billion 0% convertible bonds due 2026 at negative yield, up 35%-50%

By Abigail W. Adams

Portland, Me., May 24 – GlobalWafers Co. Ltd. plans to price $1 billion 0% currency-linked convertible bonds due 2026 on Monday with price talk for a put price of 96.31 to 99.25, a maturity redemption price of 93.92 to 98.76 for a yield to put or maturity of negative 1.25% to negative 0.25% and an initial conversion premium of 35% to 50%, according to a market source.

DBS Bank Ltd., Nomura International (Hong Kong) Ltd. and UBS AG Hong Kong Branch are joint bookrunners for the Regulation S offering.

The bonds are callable on or after May 31, 2024 subject to a 130% hurdle.

They are putable on May 31, 2024 or upon a change-of-control or delisting event.

The bonds are linked to new Taiwan dollars. They will be settled in U.S. dollars according to a fixed exchange rate of NT$27.912 to US$1.

Proceeds will be used for the procurement of raw materials in foreign countries.

GlobalWafers is a Hsinchu, Taiwan-based semiconductor company.

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