By Jennifer Chiou
New York, Jan. 9 - Malaysia's IOI Corp. Bhd. on Wednesday said it priced $600 million of five-year zero-coupon unsecured guaranteed third exchangeable bonds to yield 1.25% with an initial conversion premium of 30.18% over the common stock's closing price on Tuesday.
The bonds were offered at par. They were issued by IOI Resources (L) Bhd., a wholly owned subsidiary of IOI Corp., and are exchangeable into common stock of the listed company. IOI Corp. is also the guarantor of the bonds.
Citigroup was the bookrunner of the Regulation S offering.
The $600 million note issue includes a $100 million greenshoe that was fully exercised.
The exchangeables are non-callable for the first two years, after which they may be called subject to a hurdle at 130% of the exchange price. They may be put in the third year.
The exchangeables have takeover protection.
There is a cash settlement option.
IOI, a Putrajaya, Malaysia-based palm oil production and property conglomerate, plans to use the proceeds for general corporate purposes.
| Issuer: | IOI Resources (L) Bhd.
|
| Issue: | Unsecured guaranteed third exchangeable bonds
|
| Exchange property: | IOI Corp. Bhd. common stock
|
| Bookrunner: | Citigroup
|
| Amount: | $600 million, including $100 million greenshoe fully exercised
|
| Maturity: | Jan. 15, 2013
|
| Coupon: | 0%
|
| Price: | Par of $100,000
|
| Yield: | 1.25%
|
| Conversion premium: | 30.18%
|
| Conversion price: | RM 11.00
|
| Conversion ratio: | 29,818.1818 shares
|
| Cash settlement option: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Jan. 15, 2010, thereafter callable subject to 130% hurdle
|
| Put option: | Jan. 15, 2011
|
| Pricing date: | Jan. 9
|
| Guarantees: | IOI Corp. Bhd.
|
| Distribution: | Regulation S
|
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