At pricing in London yesterday Wednesday, CMC Magnetics raised $100 million from a zero coupon convertible that offers investors the most attractive terms for a Taiwanese convertible year-to-date.
Led by Lehman Brothers, a five-year deal was priced at par with a conversion premium of 11% to Wednesday's NT$26.4 close and a re-set in years two, three and four subject to a cumulative floor of 80%. The deal is non-callable for three years and thereafter subject to a 125% hurdle.
It also has put options in years two and three, with redemption at par. In year two, the bond is puttable at 113.758% to yield 260bp over Treasuries, or a yield-to-put...
