By Kenneth Lim
Boston, Dec. 14 - Malaysia's IOI Corp. Bhd. on Thursday priced $370 million of five-year zero-coupon exchangeable unsubordinated unsecured bonds to yield 3% with an initial conversion premium of 27.7% over the common stock's closing price on Thursday.
The bonds were offered at par. They were issued by IOI Capital (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 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 to settle inter-company borrowings, to repay bank debt and to fund capital expenditures and investments.
| Issuer: | IOI Capital (L) Bhd.
|
| Issue: | Exchangeable unsubordinated unsecured bonds
|
| Exchange property: | IOI Corp. Bhd. common stock
|
| Bookrunner: | Citigroup
|
| Amount: | $370 million
|
| Greenshoe: | None
|
| Maturity: | Dec. 18, 2011
|
| Coupon: | 0%
|
| Price: | Par of $100,000
|
| Yield: | 3%
|
| Conversion premium: | 27.7%
|
| Conversion price: | RM 23.50
|
| Conversion ratio: | 15,063.8298
|
| Cash settlement option: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Dec. 18, 2008, thereafter callable subject to 130% hurdle
|
| Puts: | Dec. 18, 2009
|
| Pricing date: | Dec. 14
|
| Guarantees: | IOI Corp. Bhd.
|
| Distribution: | Regulation S
|
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