chunghwa-picture-tubes-cb-in-high-demand

Chunghwa Picture Tubes CB in high demand

Generous terms and the recent investment by Warburg Pincus contribute to the strong interest, which sources say was 15 times greater than the supply.
Taiwanese TFT-LCD panel manufacturer Chunghwa Picture Tubes CPT raised at least $125 million from a convertible bond at the end of last week, which received a strong reception from investors.

Looking at the terms that doesnÆt seem too surprising, and CB specialists say the bonds were clearly priced to go with a low conversion premium range of 7% to 13%, a 1.5-year put and four potential resets down to a floor of 80%.

However, sources close to the deal pointed to the fact that the company is still loss-making û it reported a record shortfall of NT$13.9 billion $430 million in 2006 - and also in breach of several covenants related to its...
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