Top Glove Corp Bhd said today the group had yesterday successfully priced US$200 million (about RM814 million) in principal amount of the group's guaranteed exchangeable bonds via a book-building exercise.
In a statement to Bursa Malaysia today, Top Glove Corp said proceeds from the five-year bonds with the issue and maturity dates of the bonds on March 1, 2019 and March 1, 2024 respectively. The bond offers 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 Corp said: "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 2% per annum coupon rate is payable on a semi-annual basis. "The coupon rate was determined after taking into consideration among others, the prevailing market conditions on the pricing date and investors' demand during the book-building exercise," Top Glove Corp said.

 

Required:

1) Based on the article identify and explain the features of the bond issued by Top Glove Corp Bhd.

Answer rating: 100% (QA)

Top Glove Corp has issued exchangeable bonds worth US200 million with a maturity date of March 1 202... View the full answer