AU Optronics upsizes five-year CB to $800 million

The deal comes with a zero coupon, but offers a yield of 2.875%, resulting in strong demand from both outright investors and hedge funds.

AU Optronics Corp, Taiwan’s leading manufacturer of TFT-LCD panels, last night sold $800 million of five-year convertible bonds that was well-received by the market. According to sources, the deal attracted $2.5 billion of demand and more than 150 investors, which allowed it to be upsized from a base size of $600 million.

The bonds are convertible either into AUO’s common shares listed in Taiwan, or its American depositary shares which trade on the New York Stock Exchange. They came with a zero coupon, but were priced with a yield-to-maturity of 2.875% and a conversion premium of 27.5% over yesterday’s closing price.

The strong reception would have come as a relief to the CB...

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