Lead manager Merrill Lynch priced an increased $321.6 million convertible for Asustek Computer yesterday Thursday. Terms were adjusted slightly to extract more value, with the issue price raised from par to 100.50% and proceeds from $280 million to $281.4 million. With the greenshoe expected to be exercised today, proceeds will rise to $321.6 million.
Final terms comprise a five-year maturity with two-year call and put options and redemption at 98.5% to yield minus 1%. The conversion premium was fixed at the top end of the indicative range at 32.50% to the stock's spot close of NT$76.5.
Underlying assumptions comprise a bond floor of 92%, implied volatility of 38% and...
