Hon Hai surprises market with long-awaited CB

After months of preparation, the Taiwan issuer launches a three-year deal the night before a long weekend, offering no yield and a 30% premium.

Taiwan’s Hon Hai Precision Industry, the world’s largest manufacturer of electronic components, raised $1 billion on Thursday evening from the sale of a convertible bond that has been in the works since late last year. The company, which makes components for a variety of products including Apple’s iPhone and iPad, initially wanted five-year debt, but has been unable to find support in the market and has had to re-file with the regulators twice each time shortening the potential maturity. The latest filing suggested either a five-put-three deal or a straight three-year offering.

The CB, which was arranged by Credit Suisse and Standard Chartered, finally came as a three-year deal with no put, but a...

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