Hanjin Shipping raised $150 million Wednesday from the sale of five-year convertible bonds that it plans to use for general corporate purposes.
The U.S. dollar-denominated bonds carry a coupon and yield of 4 percent.
The share price for converting the bonds to stock was set at 29,640 Korean won ($27.85), which represents a 20 percent premium over the stock’s closing price on the Seoul Stock Exchange of 24,700 Korean won on July 6. The conversion premium was marketed between 20 and 25 percent.
The bond sale was launched with a base issue size of $150 million and an upsize option of $50 million, which can be exercised within the first 30 trading days.
The five-year offering will mature in 2016, but investors have the option to put the bonds back to the issuer in the third year. There is an issuer call after three years subject to 130 percent trigger. J.P. Morgan was the sole book-runner of the deal.
Hanjin plans to enlarge its fleet size and acquire more terminals as it aims to become a global logistics leader, according to its Web site. In June it placed $845.9 million in orders for five new container ships with capacities of 13,000 20-foot equivalent units, which are best suited for the Asia-Europe trade.
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