Delta Electronics, Inc. (Taiwan), the parent company of Delta Electronics (Thailand) PCL (SET: DELTA), is seeking to raise US$1.5 billion through zero-coupon exchangeable bonds that can be exchanged into shares of the Thai-listed electronics manufacturer, according to terms of the deal seen by Bloomberg News.
The offering comprises US$500 million of bonds due in 2027 and US$1 billion of bonds due in 2031, with both tranches carrying zero coupons.
For the 2027 bonds, the yield to maturity is indicated at 2%-4% per annum, while the 2031 bonds carry a yield range of 0.5%-1.5% per annum, according to the terms.
The exchange premium is set at 15%-20% over the reference price for the 2027 bonds and 30%-40% for the 2031 bonds. The reference price is based on DELTA’s share price in a concurrent Delta placement, according to the deal terms.
The proceeds will be used to strengthen working capital and support future business expansion.
The 2027 bonds will not include an investor put option. Holders of the 2031 bonds will have put options on or around March 21, 2028, and September 21, 2029.
The issuer will be subject to a 90-day lock-up following the transaction. Citibank is acting as the sole global coordinator and joint bookrunner for the offering.
