hynix-surprises-market-with-high-coupon-cb

Hynix surprises market with high coupon CB

The 4.5% coupon allows the memory-chip maker to achieve a premium above 40%, but the strong demand suggests investors think it is good value.
Korean memory-chip maker Hynix Semiconductor has secured $583.4 million from a convertible bond that raised a few eyebrows because of its high annual coupon.

The bond, which was launched and completed after the market closed yesterday, is also noteworthy because of the inclusion of no less than six joint bookrunners, of which only Credit Suisse and Woori Investment Securities were retained from the companyÆs previous CB issue last year. This time they were joined by Goldman Sachs, Korea Development Bank, Macquarie Securities and Morgan Stanley.

Having gone out with a range of 4.5% to 5%, the final annual interest payment was fixed at 4.5% which was higher than on any other convertible from Asia ex-Japan...
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