New Issue: UMC $302 million (proceeds) 0% convertibles at 0.75% yield, up 40%

By Ronda Fears

Nashville, Tenn., Dec. 5 - United Microelectronics Corp. launched and sold $302 million of 2.25-year zero-coupon convertible unsecured unsubordinated notes at par for a yield-to-maturity of 0.75% with a 40% initial conversion premium in the Rule 144A market, via book-running lead manager Morgan Stanley.

The issue was oversubscribed 17 times in only five hours of marketing, according to the Taiwan based chipmaker.

The yield-to-maturity was at "the tight end of the indicative range and the lowest yield-to-maturity every achieved on an Asia Pacific convertible or exchangeable bond that did not feature a rolling put provision for investors," the company said in a statement, adding that the initial conversion premium was "the highest conversion premium ever for an Asia Pacific issuer."

The issue also is the first Taiwanese convertible bond to use treasury stock as conversion property, the company said.

Terms of the new deal are:

Issuer: United Microelectronics Corp.

Amount: $302 million

Lead Manager: Morgan Stanley

Co-Manager: UBS Warburg

Maturity Date: March 1, 2004

Coupon: 0%

Issue Price: par

Yield-to-maturity: 0.75%

Redemption price: 101.675

Conversion Premium: 40%

Conversion Price: $11.718 ADS (NTD 80.76)

Conversion Ratio: 853.388 ADS (4,266.94 ordinary shares)

Call: non-callable for 18 months with 130% hurdle

Settlement Date: Dec. 12

End

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.