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A $70m convertible for Hyundai Precision has underlined the renewed appetite for Korean equity, with the deal closing four times oversubscribed.
Bankers said that they were pleased with the reception to the 10 year deal, which marks the first in a long line of expected offerings from the republic during the second and third quarter.
The deal was lead managed by Bankers Trust and pricing comprised a 0.25% coupon with a short first coupon and conversion price of Won17,136, representing a 12% premium over the stock's five day closing average.
With a put price of 138.83% to yield 7.002%, or 38bp over five year Treasuries, the deal also has downward revision clauses in years one and two with an 80% floor and call from year one at accreted value subject to a 130% hurdle in 1998, a 135% one in 1999, 140% one in 2000, 145% hurdle in 2001/2002 and at par thereafter.
Alongside Bankers Trust, Hyundai Securities was joint...