Delta Electronics International (Singapore) Ltd is preparing to raise 1.5 billion US dollars through the issuance of dollar-denominated bonds exchangeable into shares of Delta Electronics (Thailand) Public Company Limited. The issuance is split into two tranches: 500 million US dollars of bonds maturing in 2027 and 1 billion US dollars of bonds maturing in 2031. Both tranches carry a coupon rate of 0%. The 2027 bonds have a yield to maturity of 2-4% per year, while the 2031 bonds have a yield of 0.5-1.5% per year. The bonds are exchangeable into Delta Electronics (Thailand) shares at an exchange price approximately 15-20% above the price of a concurrent Delta share offering for the 2027 bonds, and approximately 30-40% above for the 2031 bonds. Proceeds from the issuance will be used to strengthen working capital and support future business expansion. Investors will not have the right to require the issuer to redeem the bonds early on or around March 21, 2028 for the 2027 bonds, and on or around September 21, 2029 for the 2031 bonds. The issuer has a 90-day lock-up period on share sales. Citibank is the sole global coordinator and a joint bookrunner for the bonds.
Delta Electronics (Thailand) Public Company LimitedDelta Thailand shares will be diluted by the $1.5B exchangeable bond issuance and concurrent share offering tied to its stock.
Citigroup Inc.
