Taishin has board approval for exchange bonds and preferred shares

Chicago, Dec. 23 – Taiwan’s Taishin Financial Holding Co., Ltd. received approval from its board of directors to issue up to NT$5 billion of domestic unsecured exchangeable bonds and up to NT$3 billion of class F registered exchangeable preferred shares, according to separate announcements.

Bonds

For the exchangeable bonds, Taishin can issue three-year bonds with a 0% coupon for par of NT$100,000 at 100.5.

Proceeds may be used to repay borrowings, enhance working capital and meet future investment needs.

The bonds are callable subject to a 130% hurdle for 30 consecutive days.

Taipei Fubon Commercial Bank Co., Ltd. is listed as the trustee.

KGI Securities Co., Ltd. is the underwriter.

Preferreds

Taishin may also issue par of NT$10 class F registered exchangeable preferred shares.

The maximum amount of shares that can be issued is 300 million.

The price range is between NT$15.90 to NT$23.60 per share.

For employees, 10% of the issue can be allocated. Another 10% can be publicly sold.

The other 80% will be subscribed to or allotted to existing shareholders.

The dividend will be floating based on the 10-year IRS plus a margin between 300 basis points and 360 bps.

The preferred shares are exchangeable on a one-to-one basis for common shares between the eighth and tenth years.

After the tenth year, the company can freely exchange the shares into common stock on a one-to-one basis.

Proceeds will be used to enhance working capital and meet future investment needs.

The issuer is a financial services company based in Taipei, Taiwan.

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