TCC (1101-TW) announced today (1) that overseas unsecured convertible bonds (ECB) have completed their pricing, with a conversion price of 59.8 yuan, representing a premium of about 30%; TCC’s total ECB is US$800 million, which is 5 The annual bond is expected to be issued on the Singapore Exchange on December 7, and the maturity date is December 7, 2026.
TCC stated that if the ECB is fully converted this year, the maximum dilution ratio to the original shareholders’ equity will be about 5.72%. Although it will cause capital inflation and dilute earnings per share, it can increase its own funds, reduce debt ratio, and strengthen its financial structure.
TCC further pointed out that future funds will be used to invest in overseas subsidiaries or repay bank loans of overseas subsidiaries, as well as original currency purchases. It is expected to save borrowing interest expenses and reduce the risk of exchange rate changes, which will be more helpful to future operations and development. beneficial.
TCC also stated that the ECB conversion price is set at 59.8 yuan, which is based on 130% of the closing price of 46 yuan on November 30. When future holders exercise the conversion rights, they will multiply the issued denomination of 200,000 US dollars by the fixed exchange rate. (Set at US$1 to NT$27.75), calculate the number of shares that can be converted into the company’s common shares; if there is less than 1 share, the remaining balance will be paid in cash, calculated to the US dollar, and rounded up to the nearest dollar.
When the ECB is redeemed at maturity, it will be converted into New Taiwan Dollars at a fixed exchange rate, and the amount of that New Taiwan Dollar will be converted into US dollars at the current exchange rate for repayment.
