Published on 8/6/2007 in the Prospect News Convertibles Daily.
New Issue: Fujitsu prices ¥200 billion convertible bonds in two tranches with 1.6% coupon, up 16.7%
By Evan Weinberger
New York, Aug. 6 - Fujitsu Ltd. priced ¥200 billion in convertible bonds in two tranches. The first tranche will mature on May 31, 2010 and the second tranche will mature on May 31, 2011. Both tranches have a 1.6% coupon through May 27, 2009 with an initial conversion premium of 16.7%. Beginning May 28, 2009, both tranches will have a 0% coupon.
Citigroup Global Markets Ltd. is the bookrunner of the Regulation S transaction.
Both tranches of the bonds have a conversion price of ¥900 and a conversion ratio of 111,111,111.111.
The bonds have a hard call option through May 27, 2009. The 2010 tranche is callable at 103.5% and the 2011 is redeemable at 104%. Both tranches have a soft-call option beginning May 28, 2009 subject to a 111.11% hurdle.
Fujitsu is an information technology and consumer electronics company based in Tokyo. The company plans to use the proceeds to refinance previously issued zero-coupon convertible bonds due 2009.
Issuer: Fujitsu Ltd.
Issue: Convertible bonds
Amount: ¥200 billion
| Coupon: | 1.6%
|
| Price: | Par
|
| Yield: | 1.6%
|
| Conversion price: | ¥900
|
| Conversion ratio: | 111,111,111.111
|
| Conversion premium: | 16.7%
|
| Bookrunner: | Citigroup Global Markets Ltd.
|
| Pricing date: | Aug. 6
|
| Settlement date: | Aug. 31
|
| Distribution: | Regulation S
|
|
|
| Tranche A
|
| Amount: | ¥100 billion
|
| Maturity: | May 31, 2010
|
| Hard call: | Through May 27, 2009, redemption at 103.5%
|
| Soft call: | Beginning May 28, 2009, subject to 111.11% hurdle
|
|
|
| Tranche B
|
| Amount | : | ¥100 billion
|
| Maturity: | May 31, 2011
|
| Hard call: | Through May 27, 2009, redemption at 104%
|
| Soft call: | Beginning May 28, 2009, subject to 111.11% hurdle
|
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