Taiwan manufacturer Umax Data Systems Inc said on Wednesday it would issue $800 million in 10-year unsecured convertible bonds on October 22 to finance production of computers "cloned" from Apple's Macintosh.
The bond issue would be Umax's first, a company official.
The bonds will be priced at $112,000 each compared to their par value of $100,000, enabling the firm to raise $896 million through the issue, Umax said.
The coupon rate has been set at 2.5 percent a year, with an initial conversion price on the issuance date at $56 per share, the company said.
Umax shares closed on Wednesday at $70, down $2.
Funds will be used to finance Umax's production of image scanners and deepen its foray into production of computers based on Apple Computer Inc's Macintosh series, it said.
Umax and its U.S. unit Umax Computer Corp are among several Asian manufacturers licensed to design and make Mac-compatible "clones" that run on Apple's popular Mac OS operating system.
In late September Umax raised its 1996 pre-tax profit target to $560 million fro $450 million and increased its full-year sales target to T$6.23 billion from $5.08 billion.
In the first nine months of 1996, company sales rose 52.25 percent year on year to $3.78 billion, it said.
Profits for the first three quarters were not disclosed.
Return to today's headlines
Copyright 1997 - 2008
GVP.DSJ Inc Web Development & GetMeOnTop SEO & Search Optimization NYC