Hannstar launches CB

A clear market allows the Taiwanese TFT-LCD manufacturer to push for tighter terms.

Joint leads Credit Suisse First Boston and ING launched a $125 million convertible yesterday Tuesday with pricing expected later today. Indicative terms for the five-year deal are a zero coupon, zero yield and par redemption structure with a conversion premium of 9% to 14%. The deal has annual puts at par and a two-year call subject to a 130% hurdle.

There are also two re-set options. The first is an annual re-fix subject to an 80% floor and the second a special re-fix at the option of the company prior to each put date. This will be either the higher of 90.1% of the market price, or 80% of par value.

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