Posco exchangeable into SK Telecom draws strong demand

The $485 million yen-denominated deal is priced with a 23% exchange premium and a 0.5% yield-to-put.

South Korean steelmaker Posco last night sold Ñ52.795 billion $485 million of bonds exchangeable into SK Telecom, which drew solid demand due to its easy-to-hedge qualities.

The new issue will replace an outstanding yen-denominated exchangeable into the same stock that matures on August 20, with the proceeds from this deal going solely to cover the redemptions of that issue.

The deal was flagged by the company in mid-July, but the timing still took the market somewhat by surprise, coming as...

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