By William Gullotti
Buffalo, N.Y., Aug. 15 – Roo Hsing Co., Ltd. started a private placement of NT$150 million 7% domestic convertible bonds at par of NT$100,000 on Monday, according to a company notice on Tuesday.
The issuance period will last for five years.
The convertibles may not be called for three years or after the date that is 40 days prior to the end of the issuance period.
If the company elects to issue a recall notice, the bonds will be redeemed at par, payable as cash or converted into ordinary shares at the holder’s option.
If less than 10% of the original issue remains outstanding at any time during the call period, the bonds will be automatically recalled with the same payment conditions.
The placed convertible bonds will, if fully converted based on the NT$4.29 conversion price, result in a 4.09% dilution to the original shareholders. The resulting shareholder ratio of exchange-listed common shares over all common shares issued would be 1.0427 to 1.
According to the notice, Feng Lie Investment Ltd. is the potential investor for the convertibles.
Proceeds will be used to increase the working capital of the company’s subsidiaries.
Roo Hsing is a Taipei, Taiwan-based textile manufacturer.
| Issuer: | Roo Hsing Co., Ltd.
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| Amount: | NT$150 million
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| Issue: | Domestic convertible bonds
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| Issuance period: | Five years
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| Coupon: | 7%
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| Price: | Par of NT$100,000
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| Conversion price: | NT$4.29
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| Call features: | Non-callable for first three years or after 40 days before expiration of issuance period; at the company’s option during callable period at par, payable as cash or converted ordinary shares at the holder’s option; automatically during callable period if less than 10% of the original issue is outstanding at par, subject to same payment conditions
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| Pricing date: | Aug. 14
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| Announcement date: | Aug. 15
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| Distribution: | Private placement
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