Taiwanese chipmaker Winbond seeks $750 million in bond sale to fund capacity expansion

Taiwan memory chip maker Winbond Electronics launched a $750 million convertible bond sale on Tuesday, according to a term sheet seen by Reuters.

Winbond supplies semiconductor memory products, ‌including DRAM ⁠and ⁠code-storage flash memory, to customers in the communications, consumer electronics, automotive, industrial, and computer peripheral markets, according to its official website.

The bonds will mature in about one ​year. They will pay ⁠no coupon.


The ‌conversion premium was ​set ​at 7.5% to 10.0% over Winbond's ⁠Tuesday closing share price of T$99.50 ($3.11), ​the term sheet showed.

Citi is ​the sole global coordinator and a joint bookrunner on the deal.

Winbond plans to use the proceeds to buy machinery and equipment ‌in foreign currencies as it expands production capacity and upgrades ​processes, the ​term sheet ⁠said.

Books opened on Tuesday. The deal is expected to price on or about ​March 24 and close on or about March 31.