By Abigail W. Adams
Portland, Me., Sept. 11 – Asia Cement Corp. priced $215 million of five-year convertible bonds at par on Monday with a coupon of 0% and an initial conversion premium of 10%, according to a company announcement.
The conversion price for the bonds is NT$42.24 with the conversion rate fixed at NT$30.794 per $1.00.
The bonds will be redeemed at their principal amount with a yield calculated at 0.6% per year at maturity, according to the announcement.
The bonds are non-callable until Sept. 21, 2021 and then only if the company’s shares on the Taiwan Stock Exchange are trading at 130% of the early redemption price.
The bonds are also callable if less than 10% of the principal amount remains outstanding or in a tax event. The early redemption price will be the principal amount plus a 0.6% annual yield.
The bonds are putable on Sept. 21, 2021 or upon a fundamental change at a price equal to the principal amount plus an annual yield of 0.6%.
The offering is being made via the Singapore Exchange Ltd. Proceeds will be used for the repayment of debt.
Asia Cement is a Taipei City, Taiwan-based manufacturer of cement, clinker and ground granulated blast-furnace slag.
| Issuer: | Asia Cement Corp.
|
| Securities: | Overseas unsecured convertible bonds
|
| Amount: | $215 million
|
| Maturity: | Sept. 21, 2023
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion premium: | 10%
|
| Conversion price: | NT$42.24 with conversion rate fixed at NT$30.794 per $1.00
|
| Call options: | Non-callable until Sept. 21, 2021 then subject to a 130% hurdle
|
| Put options: | Putable on Sept. 21, 2021 or upon a fundamental change
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 21
|
| Stock symbol: | TPE: 1102
|
| Stock price: | NT$38.40 at the market close Sept. 10
|
| Market capitalization: | NT$121.35 billion
|
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