By Rebecca Melvin
New York, June 11 – Hyundai Heavy Industries Co. Ltd. priced $221.6 million of five-year 0% senior notes on Wednesday that are exchangeable into shares of Hyundai Merchant Marine Co. Ltd., according to a pricing term sheet.
The Korea Development Bank is guarantor of the Regulation S deal, which was initially talked at $209.7 million to $221.7 million in size.
Pricing came at the rich end of talk, which was for an initial exchange price of KRW 9,919 to KRW 10,491 and premium of 30% to 37.5%.
The exchangeables priced at a par of $200,000 each and are non-callable for three years and then provisionally callable if shares exceed 130% of the conversion price. There is a put at year three.
Proceeds are for working capital and other general corporate purposes.
There is dividend protection via a full pass-through and takeover protection.
BofA Merrill Lynch and the Hongkong and Shanghai Banking Corp. Ltd. were joint bookrunners.
Application is being made to list the bonds on the Singapore Exchange Securities Trading Ltd.
Seoul, South Korea-based Hyundai Heavy Industries builds ships for commercial and military purposes, and Hyundai Merchant Marine provides maritime transportation services.
| Issuer: | Hyundai Heavy Industries Co. Ltd.
|
| Exchange entity: | Hyundai Merchant Marine Co. Ltd.
|
| Guarantor: | The Korea Development Bank
|
| Issue: | Guaranteed exchangeable senior notes
|
| Amount: | $221.6 million
|
| Maturity: | June 29, 2020
|
| Bookrunners: | BofA Merrill Lynch and the Hongkong and Shanghai Banking Corp. Ltd.
|
| Co-manager: | The Korea Development Bank
|
| Coupon: | 0%
|
| Price: | Par, $200,000
|
| Yield: | 0%
|
| Exchange premium: | 37.5%
|
| Exchange price: | KRW 10,491
|
| Exchange ratio: | 21,126.68 shares
|
| Calls: | Non-callable for three years and then provisionally callable at 130% price hurdle
|
| Puts: | June 29, 2018
|
| Pricing date: | June 10
|
| Closing date: | June 29
|
| Price talk: | 30%-37.5% premium, exchange price KRW 9,919 to KRW 10,491
|
| Reference share price: | KRW 7,630 at close on June 10
|
| Distribution: | Regulation S
|
| Stock symbols: | Korea: 009540; 011200
|
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