Taiwan's Catcher Technology to sell $260 million five-year convertibles

By Devika Patel

Knoxville, Tenn., Dec. 11 - Catcher Technology Co., Ltd. informed the Taiwan Stock Exchange that it plans to price an offering of up to $260 million in five-year euro convertible bonds.

The bonds will be sold with a face value of $1,000 at a price and coupon yet to be determined in an international public offering.

Proceeds will be used to procure machinery and equipment, to expand factory buildings, to set up a new research and development center and to invest in a subsidiary.

On Oct. 13, the company's board of directors approved a plan to issue 40 million to 50 million Global Depositary Shares to raise funds for machinery and equipment, expansion, research and development and investments.

However, after taking into consideration recent market volatilities and shareholders' interests, the board decided to replace the original plan with a dual-tranche offering of Global Depositary Shares and euro convertible bonds.

Under the revised plan, the company plans to issue 20 million Global Depositary Shares and raise up to $260 million through euro convertible bonds.

Catcher Technology, based in Yungkang City, Taiwan, makes hard disk parts, aluminum alloy die castings, parts for the computer and automotive industries, and sporting goods.

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