Cathay Financial Holding Co (國泰金控), Taiwan's biggest financial company, is offering US$700 million of bonds convertible into its shares, according to a sales memorandum sent to investors by the sale's arranger, Goldman Sachs Group Inc.
The five-year bonds will be converted into shares at a premium of between 20 percent and 25 percent to their close on the pricing date, according to the one-page sales document. Shares in the company, which may sell another US$150 million of bonds if there is sufficient demand, Monday closed at NT$50.5.
The bonds will yield between 2.25 percent and 2.75 percent and are slated for pricing on May 15, according to the document. Goldman spokesman Peter Rose and Cathay Financial spokesman Lee Chang-ken declined to comment.
The owner of Taiwan's largest life insurer in April said sale pro-ceeds would be used to fund acquisitions and reorganize its business. It's taking over Cathay United Bank Co and Tong Tai Insurance Co, and plans further expansion under new laws letting banks, brokers and insurers combine.
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