This article first appeared in The Edge Financial Daily on February 22, 2019

KUALA LUMPUR: Top Glove Corp Bhd said the group yesterday successfully priced US$200 million (RM816 million) in principal amount of the group’s guaranteed exchangeable bonds via a book-building exercise.

In a statement to Bursa Malaysia, Top Glove Corp said proceeds from the five-year bonds with a coupon rate of 2% a year will refinance the existing debt of the group and payment of fees and expenses relating to the bonds issue.

Top Glove Labuan Ltd is the issuer of the bonds with an aggregate principal amount of up to US$300 million while Top Glove Corp is the guarantor, said the latter, adding that the issue and maturity dates of the bonds are on March 1, 2019 and March 1, 2024 respectively.

“The bonds may be exchanged into new Top Glove shares at the option of the bondholders during the exchange period. The initial exchange ratio shall be 656.0767 Top Glove shares per US$1,000 in principal amount of the bonds,” Top Glove Corp said.

BNP Paribas Securities (Asia) Ltd, CIMB Bank (L) Ltd and Citigroup Global Markets Ltd are the joint global coordinators, joint lead managers and joint bookrunners for the bonds issue.

Top Glove Corp said it will unconditionally and irrevocably guarantee: i) the due payment of all sums to be payable by the issuer under the trust deed and the bonds; and ii) the due and punctual performance of all the issuer’s obligations under the trust deed and the bonds.

Top Glove Corp said the 2% per annum coupon rate is payable on a semi-annual basis.