Catcher Technology Co (可成科技), laptop chassis maker and one of the nation’s largest manufacturers of magnesium alloy parts, said yesterday it planned to issue both non-collateral convertible bonds in Taiwan and global depositary receipts (GDR) abroad to cope with future investment needs.
In a stock exchange filing yesterday, Catcher said its board approved a proposal to sell up to NT$5 billion (US$155 million) in five-year zero-coupon convertible bonds to purchase new machinery equipment, repay bank loans and improve its working capital.
The board also agreed to a recapitalization plan through the issuance of GDRs, a separate filing said. The GDRs will be backed by 53 million to 66 million yet to be priced common shares.
Dell, Hewlett-Packard and Apple are Catcher’s main customers. On Monday the company said its sales dropped 15 percent year-on-year but rose 16 percent month-on-month to NT$1.7 billion last month.
Separately, CPC Corp, Taiwan (CPC, 台灣中油) said yesterday it sold NT$10.82 billion of corporate bonds to raise funds for oil exploration and other projects.
The bonds are made up of NT$5.12 billion in five-year bonds, NT$2.9 billion in seven-year bonds and NT$2.8 billion in 10-year bonds, CPC said on its Web site.
Yesterday’s sale priced the five-year debt at a yield of 1.2 percent, 1.4 percent for the seven-year debt and 1.65 percent for the 10-year securities, it said.
State-controlled Bank of Taiwan (臺灣銀行) and Agricultural Bank of Taiwan (全國農業金庫) will serve as joint guarantors for the bond sale, it said.
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