By Rebecca Melvin
New York, July 13 – Sony Corp. priced ¥120 billion of seven-year convertible bonds with a 42% initial conversion premium on Monday, according to a news release.
The Regulation S bonds will pay no interest. They will be non-callable until July 21, 2020 and then provisionally callable if shares exceed 130% of the conversion price for 20 consecutive trading days.
The bonds will be redeemed on Sept. 30, 2022 at 102.5% of par.
Sony also set the price for 87.2 million shares of new common stock and a secondary offering of 4.8 million shares of common stock at ¥3,420.5 each for ¥298.27 billion of proceeds.
Proceeds of the bonds will be used to drive growth and make future investments, including in the devices segment, and to redeem bonds and repay long-term debt.
Tokyo-based Sony is an electronics company.
| Issuer: | Sony Corp.
|
| Issue: | Convertible bonds
|
| Amount: | ¥120 billion
|
| Maturity: | Sept. 30, 2022
|
| Price: | Par, ¥1 million
|
| Redemption price at maturity: | 102.5
|
| Concurrent offering: | ¥298 billion of common stock at ¥3,420.5 each
|
| Conversion premium: | 42%
|
| Conversion price: | ¥5,008
|
| Contingent conversion: | 130%
|
| Call: | July 21, 2020 at 130% price hurdle
|
| Pricing date: | July 13
|
| Settlement date: | July 21
|
| Stock symbol: | Tokyo: 6758
|
| Stock reference: | ¥3,526.5
|
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