Compal Electronics launches surprise convertible

The Taiwanese notebook manufacturer has devised a highly defensive structure to attract investors at a time of market weakness.

Using a Goldman Sachs' proprietary structure, Stock Indexed Zero Coupon Securities (SIZeS), the company launched a $130 million convertible yesterday (Thursday). Initially, it had been hoping to raise up to $300 million from a combined convertible and DR offering, but ruled out the latter option after realising that investors would demand huge discount pricing to spot.

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