UMC prices US$1.8 billion 7th Unsecured Overseas Convertible Bonds in two tranches
UMC announced the pricing of US$1.8 billion aggregate 7th Unsecured Overseas Convertible Bonds, consisting of US$900 million Tranche A (5-year maturity) and US$900 million Tranche B (18-month maturity), with a 0% per annum coupon and listing on the Singapore Exchange. Proceeds will be used for the purchase of machinery and equipment and construction of plant facilities, and full conversion at the initial conversion prices would dilute original shareholders' equity by approximately 2.34%.
Key takeaways
Deal size: US$1.8 billion aggregate 7th Unsecured Overseas Convertible Bonds, split evenly into US$900 million Tranche A and US$900 million Tranche B.
Pricing: 0% per annum coupon on both tranches, issued at 100% of par with no collateral, implying negative redemption yields at issuance.
Tranche A (5-year, maturity 2031/10/13): initial conversion price NT$202.06, a 132.5% premium over the NT$152.50 reference price, and a -0.25% per annum redemption yield.
Tranche B (18-month, maturity 2028/04/13): initial conversion price NT$179.19, a 117.5% premium over the same NT$152.50 reference price, and a -1.35% per annum redemption yield.
Use of proceeds: capital expenditure on the purchase of machinery and equipment and the construction of plant facilities, consistent with foundry capacity expansion.
Dilution impact: full conversion of both tranches would dilute original shareholders' equity by approximately 2.34%.
Listing and timing: bonds to be listed on the Singapore Exchange, with the issue date set for October 13, 2026, and an FX fixed rate of US$1.00 = NT$31.753 used for NT dollar-denominated redemption amounts.
Key metrics
Primary source
TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.
Open SEC filingFollow UMC in real time
Get material earnings, filing, IR, and earnings-call alerts by email.