By Kenneth Lim
Boston, April 14 - KCC Corp. priced an upsized $200 million of five-year exchangeable senior unsecured notes near the cheap end of talk at a coupon of 3.5% and an initial exchange premium of 22% on April 8, according to market sources.
The notes are exchangeable into common stock of Hyundai Heavy Industries Co. Ltd.
The deal amount was originally set at $175 million. Price talk was indicated at a coupon of 2.8% to 3.5% and an initial conversion premium of 21% to 26%.
There is an over-allotment option for a further $50 million on the Regulation S offering.
Barclays Capital and J.P. Morgan Securities Inc. are the bookrunners.
The notes are callable after three years and may be put in the third year.
There is dividend protection and a change-of-control put.
The notes may be cash settled.
Proceeds will be used to repay a $152.9 million loan, for facilities investments and for business diversification.
KCC is a Seoul, South Korea-based maker of building and industrial materials. Hyundai Heavy Industries is an Ulsan, South Korea-based heavy industries engineering company.
| Issuer: | KCC Corp.
|
| Issue: | Exchangeable senior unsecured notes
|
| Exchange: | Hyundai Heavy Industries Co. Ltd. common stock
|
| Amount: | $200 million, increased from $175 million
|
| Greenshoe: | $50 million
|
| Maturity: | May 6, 2014
|
| Bookrunners: | Barclays Capital, J.P. Morgan Securities Inc.
|
| Coupon: | 3.5%
|
| Price: | Par of $100,000
|
| Yield: | 3.5%
|
| Conversion premium: | 22%
|
| Conversion price: | KRW243,390
|
| Conversion ratio: | 554.830
|
| Cash settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Change-of-control put
|
| Call protection: | Non-callable before May 6, 2012
|
| Puts: | May 6, 2012
|
| Price talk: | 2.8%-3.5%, up 21%-26%
|
| Pricing date: | April 8
|
| Settlement date: | April 9
|
| Distribution: | Regulation S
|
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