By Sheri Kasprzak
New York, July 21 - Chartered Semiconductor Manufacturing said it has arranged a private placement of units for $250 million.
The units include convertible redeemable preferred shares and amortizing bonds, both due in 2010.
The preferreds are convertible into common shares or American depositary shares at a 20% premium over the volume-weighted average price for the five trading days ending Aug. 17.
If not converted, the preferreds will be redeemed at face value in 2010.
The bonds will be issued with an initial principal of $39 million and are payable in semi-annual cash amounts at $4.56 million per payment in both principal and interest.
The proceeds from the units, and from a $450 million public offering of senior notes, will be used to repurchase the company's $575 million 2.5% senior convertible notes, which are redeemable in April 2006.
Based in Milpitas, Calif., Chartered makes semiconductors used in consumer appliances.
| Issuer: | Chartered Semiconductor Manufacturing
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| Issue: | Units of convertible redeemable preferred stock and amortizing bonds
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| Amount: | $250 million
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| Maturity: | 2010
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| Conversion price: | A 20% premium to the volume-weighted average price for five trading days ending Aug. 17
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| Call: | Preferreds are redeemable at face value in 2010 if not converted
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| Warrants: | No
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| Pricing date: | July 21
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| Stock price: | $0.80 at close July 21
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| Placement agent: | Goldman Sachs (Singapore) Pte.
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