Johnson Electric makes rare move with $200m CB

Hong Kong motor company breaks 20-year absence from capital markets to lock in cheap funding.

Hong Kong’s Johnson Electric made its first venture into the capital markets in 20 years on Wednesday evening, raising $200 million through a convertible bond that investors snapped up in 90 minutes.

The company, which makes electric motors for everything from power steering to hairdryers, raised five-year money that pays investors a yield of 2.75% and converts to equity at a 37.5% premium to the closing share price on Wednesday of HK$7.46.

Sole bookrunner JP Morgan marketed the deal with a credit spread of 300bp and priced it at an implied volatility of 23%, which was just 2% inside the historical volatility of 25% and gave...

¬ Haymarket Media Limited. All rights reserved.

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222