ja-solar-issues-350-million-cb-with-callspread-overlay

JA Solar issues $350 million CB with call-spread overlay

A concurrent equity offering that was aimed solely at creating synthetic borrow was priced at a 2.95% discount to the market price.
Chinese solar cell designer and manufacturer JA Solar has raised $350 million from a five-year convertible bond issue that was upsized from $300 million after strong demand from both CB specialist hedge funds and outright investors. The bonds were offered together with a concurrent placement of American depositary shares ADS that were sold with the sole purpose of being used as a hedging tool for the CB and resulted in no additional money for the company.

According to sources, the total demand for the bonds exceeded $1 billion. However, the company chose to increase the original size instead of trying to tighten the pricing and the final terms were fixed at the wide end of...
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