LG Philips CB raises $500 million but trades down
A gain of more than 8% in the share price on launch day adds to an already high 40% conversion premium for the Morgan Stanley-led deal.
Every now and then a convertible bond comes along that gets the entire market talking and yesterdayÆs $500 million issue from KoreaÆs LG Philips LCD was certainly one of those.
Initially, the interest centred on the aggressive terms and the fact that the sizeable deal was launched with only one bookrunner û Morgan Stanley û but quite quickly the attention turned to the grey market where the bonds were quoted below par shortly after the deal hit the market, suggesting...
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