By Kenneth Lim
Boston, June 8 - Japan's Oki Electric Industry Co. Ltd. priced ¥30 billion of zero-coupon convertible bonds in two tranches at an initial conversion premium of 45.17% over its Wednesday closing stock price.
The ¥18 billion 31st series comprises three-year bonds, while the ¥12 billion 32nd series comprises five-year bonds.
The conversion price is ¥376 per share. Oki stock closed at ¥259 on Wednesday.
The conversion price for the 31st series will be reset every month to 93% of the five-day average closing stock price subject to a ¥250.4 floor. The conversion price for the 32nd series will be reset quarterly to 93% of the five-day average closing stock price, but the floor is ¥291.
There is no call protection on the 31st series. The 32nd series may be called at par subject to a hurdle of 120% of the conversion price, but the convertible may be called at any time in the first year at 102% of the principal and at 104% of the principal after that.
Convertible holders may put the 31st series bonds at par if Oki stock closes below ¥219.1, while the 32nd series convertibles may be put for 104% of the principal if Oki stock closes below the same level.
Oki, a Tokyo-based electronics maker, did not say how it would use the proceeds of the deal.
| Issuer: | Oki Electric Industry Co. Ltd.
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| Issue: | Convertible unsubordinated unsecured bonds
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| Takeover protection: | Company may call bonds upon merger
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| Pricing date: | June 7
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| Settlement date: | June 7
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|
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| 31st series
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| Amount: | ¥18 billion
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| Maturity: | June 5, 2009
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| Coupon: | 0%
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| Price: | Par of ¥100 in denominations of ¥500 million
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| Yield: | 0%
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| Conversion premium: | 45.17%
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| Conversion price: | ¥376, with monthly resets to 93% of the five-day average closing stock price and subject to a floor of ¥250.4
|
| Conversion ratio: | 0.2659, subject to monthly resets
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| Call protection: | None
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| Puts: | Putable at par if stock closes below ¥219.1
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|
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| 32nd series
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| Amount: | ¥12 billion
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| Maturity: | June 7, 2011
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| Coupon: | 0%
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| Price: | Par of ¥100 in denominations of ¥500 million
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| Yield: | 0%
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| Conversion premium: | 45.17%
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| Conversion price: | ¥376, with quarterly resets to 93% of the five-day average closing stock price and subject to a floor of ¥291
|
| Conversion ratio: | 0.2659, subject to monthly resets
|
| Call protection: | Callable at principal subject to 120% hurdle. Callable at ¥102 until June 7, 2007, and at ¥103 after that
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| Puts: | Putable at 104% of the principal if stock closes below ¥219.1
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