Seiren talks ¥15 billion 0% convertibles due 2025 with an offer price of 104.5-106.5, up 20%

By Abigail W. Adams

Portland, Me., Dec. 9 – Seiren Co., Ltd. plans to price ¥15 billion 0% convertible bonds due 2025 on Wednesday with price talk for an issue price of 102 to 104, an offer price of 104.5 to 106.5, and a fixed initial conversion premium of 20%, according to a market source.

Nomura International plc is bookrunner for the Regulation S offering.

The bonds are non-callable until Dec. 29, 2023 and are then subject to a 130% hurdle. They are also subject to a clean-up call if less than 10% of the bonds remain outstanding.

The bonds are putable upon a fundamental change or delisting event.

Approximately ¥10 billion will be used for capital expenditures, ¥2 billion will be used for development expenses for its electronics business segment, and ¥3 billion will be used for share repurchases.

Any remaining proceeds will be used for debt repayment.

Seiren is a Tokyo-based fiber manufacturing company.

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