By Rebecca Melvin
New York, March 7 – Suzuki Motor Corp. launched and priced ¥200 billion of 0% convertible bonds in two tranches under Regulation S with a 40% initial conversion premium, according to a company news release.
The 2021 tranche and the 2023 tranche are each ¥100 million in size. The conversion price of both tranches is ¥4,120.00.
Nomura International plc is the bookrunner and lead manager of the deal.
Proceeds will be used for accelerating the group’s mid-term management plan and for strengthening its competitive position.
Among other things, about ¥60 billion will be used at the end of April for repayment of a short-term loan borrowed for increasing the capital of Suzuki Motor Gujarat Private Ltd.), an automobile manufacturing subsidiary in Gujarat, India. About ¥100 billion will be used at the end of March 2018 for funding increasing capital of SMG, and about ¥25 billion will be used at the end of March 2018 for research and development.
Suzuki is a Japanese multinational company specializing in automobiles, four-wheel drive vehicles and motorcycles.
| Issuer: | Suzuki Motor Corp.
|
| Issue: | Convertible bonds in two tranches
|
| Amount: | ¥200 billion
|
| Bookrunner: | Nomura International plc
|
| Coupon: | 0%
|
| Price: | Par, ¥10 million
|
| Conversion premium: | 40%
|
| Conversion price: | ¥4,120.00
|
| Pricing date: | March 7
|
| Settlement date: | April 1
|
| Distribution: | Regulation S
|
| Stock symbol: | Tokyo: 7269
|
| Stock reference price: | ¥2,942.0
|
| Market capitalization: | ¥1.751 trillion
|
|
|
| 2021 Tranche
|
| Issue: | Convertible bonds
|
| Amount: | ¥100 billion
|
| Maturity: | March 31, 2021
|
| Price: | 100.5% of ¥10 million par
|
|
|
| 2023 Tranche
|
| Issue: | Convertible bonds
|
| Amount: | ¥100 billion
|
| Maturity: | March 31, 2023
|
| Price: | 100% of ¥10 million par
|
|
|
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