UTAC issues dual tranche CB with long maturity

Both tranches are priced with a 38% conversion premium. Scarcity of tech-sector convertibles helps to boost demand.

Singapore-listed United Trust and Assembly Centre UTAC has raised $165 million from the sale of a dual-tranche convertible bond, which met with strong demand despite a longer than usual maturity.

Based on the effective maturity dates, the Citigroup-led US dollar-denominated deal is the longest tech sector CB of size out of Asia since early 2005. Both tranches have a final maturity of seven years, but investors can put them back to the issuer after four and five years.

The company,...

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