Elpida Memory to sell ¥27.5 billion five-year convertible bonds talked at 0.5%-0.9% coupon

By Rebecca Melvin

New York, July 11 - Elpida Memory Inc. plans to price ¥27.5 billion five-year convertible bonds at ¥102.5 for each ¥100 bond talked at a coupon of 0.5%-0.9%, according to a news release.

The initial conversion premium range is expected to be set July 15, with final pricing expected July 25.

The bonds mature Aug. 1, 2016.

The bonds are non-callable until Sept. 2, 2013 and then are provisionally callable subject to a 130% price hurdle at rate of ¥100 per bond.

Elpida also plans to price about ¥79.7 billion in equity between July 25 and July 27, with both international and Japanese offerings.

The issuance of convertibles depends on the completion of both the international and Japanese equity offerings.

Proceeds will be used to equip wafer fabrication facilities for production of DRAM in the company's Hiroshima Plant, to install new TSV process manufacturing lines, to invest in research and development primarily for the developing next-generation processes and new memory technologies, which are required to further its technological advantages, and to improve its profitability and strengthen competitiveness.

The company will use a part of the proceeds to repay interest-bearing liabilities. In addition to strengthening its capital basis through the issuances, the offerings will enable the company to establish an early financial foundation to maintain competitiveness in a changing DRAM market environment and to continue to grow.

Tokyo-based Elpida is a supplier of dynamic random access memory.

© 2015 Prospect News.
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