By Rebecca Melvin
New York, July 7 - Hanjin Shipping Co. Ltd. sold $150 million of five-year convertible bonds at par on Wednesday to yield 4% with an initial conversion premium of 20%, according to market sources.
The bonds, with a $50 million over-allotment option, priced at the cheap end of talk, which was for a coupon of 3.5% to 4% and an initial conversion premium of 20% to 25%.
The bonds are convertible at 29,640 Korean won after the first year. They are non-callable for three years and then provisionally callable subject to 130% price trigger. Holders can put the bonds back at par after three years.
J.P. Morgan Securities LLC was the bookrunner.
Proceeds are for general corporate purposes and working capital.
Korea-based Hanjin is a marine transportation services company, with different types of vessels including LNG carriers, bulk carriers and oil tankers.
| Issuer: | Hanjin Shipping Co. Ltd.
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $50 million
|
| Maturity: | 2016
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 20%
|
| Conversion price: | 29,640 Korean won
|
| Calls: | Non-callable for three years then provisionally callable subject to a 130% price trigger
|
| Puts: | In year three
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 3.5%-4%, up 20%-25%
|
| Pricing date: | July 6
|
| Stock symbol: | Korea: 117930
|
| Stock reference price: | 24,700 Korean won at close June 6
|
| Market capitalization: | 1.95 billion Korean won
|
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