By Ronda Fears
Nashville, May 22 - Alps Electric Co. Ltd. sold ¥30 billion of convertible senior notes due March 31, 2010 at 101.5 with a 0% coupon and 47.07% initial conversion premium in the Regulation S market via bookrunner UBS Warburg. The issue was offered at 104.
The quick-sale deal sold at the aggressive end of guidance which put the premium at 42% to 47%, the issue price at 100.5 to 101.5 and the offer price at 103 to 104.
There is a call feature at 106 if the issue is redeemed in the first year, declining by 1% per year thereafter. Also, if the company pays a common dividend of over ¥12 per share, the conversion price will be adjusted downward equivalent to what would result if the excess were reinvested in shares.
The Tokyo-based company manufactures electronic components, as well as magnetic devices and automotive electronics. Alpine Electronics is one of its premium units.
Terms of the deal are:
Issuer: Alps Electric Co. Ltd.
| Issue: | Convertible senior unsubordinated unsecured notes
|
| Lead manager: | | UBS Warburg
|
| Amount | ¥30 billion
|
| Maturity: | March 31, 2010
|
| Coupon: | 0%
|
| Issue price: | 101.5
|
| Offer price: | 104
|
| Redemption price: | Par of 100
|
| Conversion premium: | 47.07%
|
| Conversion price: | ¥1,706
|
| Conversion ratio: | 1,189.92
|
| Call: | Non-callable through March 31, 2006 subject to a 130% hurdle
|
| Put: | March 31, 2008
|
| Expected ratings: | Moody's: Ba1
|
| S&P: BBB+
|
| Settlement: | June 9
|
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