Epcos to raise 121-128 mln euros in seven-year convertible bonds

MUNICH, Germany (AFP) Jun 04, 2003
Epcos, the German maker of electronic components, said on Wednesday it planned to issue seven-year convertible bonds to raise 121-128 million euros (142-150 million dollars) to refinance existing debt.

The bond, convertible into Epcos shares after a period of five years, would carry a coupon of 2.5-3.0 percent and a conversion premium of 60-70 percent, Epcos said in a statement.

The exact coupon and conversion premium would be set at final pricing later on Wednesday.

Epcos said that the bond would be issued by its Dutch finance subsidiary and listed on the Luxembourg stock exchange.

It would placed with institutional investors outside the United States, Canada and Japan.

Deutsche Bank was book-runner for the issue.

Epcos said it was issuing the convertible bond "to benefit from the attractive financing opportunities availablein the current convertible market given the low interest rate and high volatility environment."

The proceeds would be used "to refinance existing indebtedness and extend Epcos' debt maturity profile," the statmeent said.

SPACE.WIRE