Cal-Comp Electronics offers US dollar-denominated convertible bond

Thailand’s Cal-Comp Electronics has closed the country’s first US dollar-denominated convertible bond since the Asian financial crisis of 1997, said sole bookrunner SG, the corporate and investment banking unit of French banking group Société Générale.

The $48 million of zero-coupon convertible bonds were sold at par and will mature on December 6 2005. The conversion price was set at 36 baht, at a fixed foreign exchange rate of 43.63 baht to the dollar, which represents a 15% premium over the company’s average closing share price in the 10 days before the issue date.

The unrated bond has a put option at a price of 102.01% in the first year and a put option at a price of 104.06% in the second year. Redemption price is 106.15% and yield-to-maturity is 2%. The security is non-callable for two years, after which the company may choose to redeem the bonds if its share price rises above 130% of the conversion price.

SG said proceeds are expected to be used to fund a new plant in China as well as for general working capital. “The success of this issue proves that Asian mid-cap companies can tap the international equity capital markets and achieve attractive terms,” Patrick Crammond, managing director of SG Investment Banking, Asia, said in a statement.