Powerchip prices CB

The Taiwanese DRAM manufacturer prices a highly defensive deal.

Nomura Securities priced a $90 million convertible for Powerchip Semiconductor Corp PSC after London's close yesterday Monday following a one-day bookbuild. The deal came at the cheap end of terms, but given the continuing lack of visibility for DRAM spot prices, the company is likely to view completion as a minor victory over market conditions.

The deal has a five-year annual puttable structure, with a zero coupon, zero yield and par redemption. The conversion premium was set at 14% to a closing share price of NT$12.40, the bottom end of a 14% to 23% indicative range. There is also a call option after three years subject to a 130% hurdle.

But the real value...

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