Taiwan-listed computer hardware maker Gigabyte Technology Co has launched a $500 million zero-coupon convertible bond due 2031, according to a term sheet reviewed by Reuters on Monday.
The U.S. dollar-denominated, new Taiwan dollar-linked bonds are convertible into the company’s Taiwan-listed shares and carry a yield to put or maturity of 2.00% to 2.50% per year, the term sheet showed.
The initial conversion price was set at 371.81 Taiwan dollars ($11.77) per share, representing a 12.5% premium to the May 18 reference share price of 330.50 Taiwan dollars a share, according to the sheet.
Proceeds will be used to procure raw materials in foreign currencies, according to the sheet.
The company did not immediately respond to an email seeking comment on Monday.
($1 = 31.5920 Taiwan dollars)
Reuters
