Promise to price ¥42 billion seven-year convertible bonds to yield 0%

By Rebecca Melvin

New York, July 9 - Japan's Promise Co. Ltd. plans to price ¥42 billion of zero-coupon convertible bonds, which will be seven-year unsubordinated and unsecured obligations of the company, according to a news release.

The Regulation S offering is approved in principle for listing on the Singapore Exchange Securities Trading Ltd.

The initial conversion price, being the price at which a holder of convertible bonds may exercise the stock acquisition rights, is ¥2,820 for each share of common stock of the company.

The bonds are non-callable for three years, becoming callable starting July 24, 2011. Holders of the bonds will be able to put the bonds in year five, beginning on July 24, 2013, at 105% of the principal amount. There is also takeover protection.

Proceeds are expected to be used to repay the remaining balance of a bridge loan facility relating to the acquisition of Sanyo Shinpan Finance Co. Ltd.

Based in Chiyoda-ku, Tokyo, Promise is a consumer finance company.

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