By Rebecca Melvin
New York, Dec. 7 - Hitachi Ltd. priced ¥100 billion of five-year convertible bonds at par to yield 0.10% with an initial conversion premium of 33.19%, according to a news release Monday.
Pricing of the Regulation S offering was determined by way of decisions taken Nov. 16 and Nov. 27, with final conversion based on Hitachi's closing share price on Dec. 7.
Hitachi is also selling 1.09 billion shares of common stock through Japanese and international share offerings, 400 million shares and 600 million shares, respectively, and by way of third-party allotment.
Proceeds from all these offerings are estimated to be ¥349.29 billion, and they will be used to fund capital expenditures of ¥220 billion, to make ¥40 billion of investments in Hitachi's information and telecommunication systems and social infrastructure businesses, and to repay debt.
The unsecured bonds will be non-callable until Jan. 3, 2013 and then provisionally callable if Hitachi shares are 130% of the conversion price for 20 continuous trading days.
The bonds will mature Dec. 12, 2014.
Tokyo-based Hitachi is an electronics conglomerate.
| Issuer: | Hitachi Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | ¥100 billion
|
| Maturity: | Dec. 12, 2014
|
| Concurrent offering: | 1.09 billion shares of common stock
|
| Coupon: | 0.10%
|
| Price: | Par
|
| Yield: | 0.10%
|
| Conversion premium: | 33.19%
|
| Conversion price: | ¥317
|
| Call protection: | Non-callable until Jan. 3, 2013, then provisionally callable at 130% price hurdle
|
| Price talk: | 0.10%-0.40%
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 14
|
| Distribution: | Regulation S
|
| Stock symbol: | NYSE: HIT; TSE: 6501
|
| Stock reference price: | ¥238
|
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