ASE prices CB

The first Taiwanese deal of the autumn pipeline benefits from an aggressive asset swap bid by its lead manager.

Taiwanese integrated semiconductor and packaging company ASE priced a $175 million convertible yesterday Thursday via ABN AMRO. The transaction incorporated an unusual structure and marks the first time since China Petrochemical in 1998 that the put option has been pushed out to four years.

Terms comprise a five-year maturity with zero coupon structure and redemption at par. The put option in year four is priced at 116% to yield 3.75% and there is also a call in the same year with a 130% hurdle. The conversion premium came in at 38.15% to a spot close of NT$27.3, or 40% to a five-day average of NT$26.8.

Underlying assumptions comprise...

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