New York, Sept. 16 - Commerce International Merchant Bankers Bhd priced $110 million of five-year zero-coupon convertible bonds to yield 1.5% with a 30% initial conversion premium.
CIMB (L) Ltd., J.P. Morgan Securities Ltd. and Morgan Stanley & Co. International Ltd. were bookrunners for the offering, which was sold through CIMB's Commerce Capital (Labuan) Ltd. subsidiary. CIMB was global coordinator.
The deal priced at the tight end of talk, and CIMB said the books were closed early after the deal was oversubscribed within 2½ hours of the launch.
CIMB described market conditions as "favorable," noting Malaysian bank spreads continue to tighten on expectations of a potential Malaysian sovereign upgrade. For investors, the deal also offered a diversification from other recent Asian equity-linked deals and "an opportunity to invest in Malaysia's compelling economic growth story."
CIMB, a Kuala Lumpur, Malaysia, financial services group, will use proceeds for working capital and general corporate purposes.
| Issuer: | Commerce Capital (Labuan) Ltd. (Commerce International Merchant Bankers Bhd)
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| Issue: | Convertible bonds
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| Amount: | $110 million
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| Greenshoe: | $15 million
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| Maturity: | Sept. 22, 2009
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| Coupon: | 0%
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| Price: | Par
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| Redemption price: | 107.758
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| Yield: | 1.5%
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| Initial conversion premium: | 30%
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| Conversion price: | RM 6.03 (in cash or stock)
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| Put: | In year three
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| Call: | After 30 months subject to 130% hurdle
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| Takeover protection: | Put at par plus accreted principal amount
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| Pricing date: | Sept. 15
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| Settlement: | Sept. 22
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| Bookrunners: | CIMB (L) Ltd., J.P. Morgan Securities Ltd., Morgan Stanley & Co. International Ltd.
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