Taiwan's Ritek Corp returned to the convertible bond market yesterday Monday with its largest and most aggressive deal to date.
With UBS as lead manager, the B rated credit raised $220 million from a zero coupon, five-year issue, which was priced at 105.16% and redeems at 92.73% to yield minus 2.5%. There is also a two-year put at par. This marked the tight end of terms comprising a yield of minus 2% to minus 2.5%.
The conversion premium was settled at 8% to the stock's NT$23.4 close, again the tight end of a 3% to 8% indicative range. The deal also incorporates three re-set options after nine months, one-and-three-quarter years...
