Johnson Electric shocks market with 7yr convertible

By Rev Hui
13 Mar 2014

Micro-motor manufacturer Johnson Electric Holdings surprised markets on March 12, pricing a highly ambitious seven put five $200m convertible bond — a structure not commonly seen in Asia ex-Japan transactions.

“It was a very ambitious trade because you usually only see established IG names attempt a seven put five CB, which Johnson Electric clearly isn’t,” a banker close to the deal said.

In 2013, only four Asia ex-Japan equity-linked transactions had a tenor of more than seven years ...

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