By Rebecca Melvin
New York, Aug. 11 - Posco, a South Korean steelmaker, priced ¥52.795 billion of bonds exchangeable into American Depositary Shares of SK Telecom to yield 0.3%, according to a news release.
The five-year zero-coupon bonds were talked to yield 0% to 0.3% with an initial exchange premium of 23%.
The exchangeables, sold via lead managers ABN Amro, Citigroup, Deutsche Bank and Goldman Sachs, are non-callable for three years and provisionally callable thereafter subject to a price hurdle of 120%.
There is a put Aug. 19, 2011 at a price of 101.51%.
The exchangeables offer dividend protection via an exchange price adjustment and takeover protection in the form of a change-of-control put.
Proceeds are for refinancing an existing exchangeable into SK Telecom that matures later this month.
| Issuer: | Posco
|
| Issue: | Exchangeable bonds
|
| Exchange security: | SK Telecom ADS
|
| Amount: | ¥52.795 billion
|
| Maturity: | Aug. 19, 2013
|
| Bookrunners: | ABN Amro, Citigroup, Deutsche Bank, Goldman Sachs
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0.3%
|
| Conversion premium: | 23%
|
| Price talk: | 0%-0.3%, up 23%
|
| Calls: | Non-callable for three years
|
| Puts: | Aug. 19, 2011 at 101.51%
|
| Change-of-control put: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Aug. 7
|
| Settlement date: | Aug. 19
|
| Issuing method: | Euro (public offering)
|
| Listing: | Singapore Stock Exchange
|
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