New Issue: Fubon $375 million convertibles at 3.75% yield, up 22.1%

By Ronda Fears

Nashville, Tenn., April 4 - Taiwan-based Fubon Financial Holdings Co. Ltd. sold $375 million of zero-coupon convertible subordinated notes due July 2004 at par to yield 3.75% with a 21.2% initial conversion premium, via joint lead managers Credit Suisse First Boston and Salomon Smith Barney. The Rule 144A premium redemption convert sold at the cheap end of yield talk and at the midpoint of premium guidance.

Market sources said it was the first Taiwanese financial company to issue a convertible in the U.S. The issue converts into existing Treasury shares or global depositary shares. Fubon shares closed in Taiwan up 0.60 to NT33.50.

Terms of the new deal are:

Issuer: Fubon Financial Holdings Co. Ltd.

Amount: $375 million

Greenshoe: $55 million

Lead Managers: Credit Suisse First Boston and Salomon Smith Barney

Maturity Date: July 10, 2004

Coupon: 0%

Issue Price: par

Yield: 3.75%

Redemption Price: 107.52

Conversion Premium: 21.2%

Conversion Price: $40.36, based on a foreign exchange rate of NT35.005 per US$1

Conversion Ratio: 867.3191

Call: provisional call for 18 months with 130% hurdle

Rating(s): S&P: BBB-

Settlement Date: April 10

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