Advanced Semiconductor Engineering Inc to gather USD 400 million through convertible bond sale

August 29
5:21 AM 2013

Advanced Semiconductor Engineering Inc (ASE) would be raising USD 400 million by selling convertible bonds. The plan of the Taiwan-based company was detailed in a term sheet seen by Reuters. The convertible bonds would be due by 2018. The term sheet further revealed that the zero-coupon bonds would have an initial conversion price ranging from TWD 32.45 to TWD 34.36.

Convertible bonds or CVs are bonds that can be converted into predetermined amount of the firm's equity. Bondholders usually have the discretion when to convert the bond into company stock. When the company selling the bond continues to do very well, for example, then the investor has that option to trade the bond for equity.

ASE hired Citigroup Inc as the coordinator for the bond offering. The term sheet also revealed that Credit Suisse, CIMB and DBS would be acting as joint bookrunners for the transaction. ASE is a leading global provider of semiconductor packaging services. Its client roster includes Microsoft, NVIDIA and Broadcom.

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