ProMOS extends early tender for bonds to Mar. 17

ProMOS on Feb. 19 offered to buyback $335.6 million of outstanding convertible bonds for as little as 10 percent of the face value after saying it doesn't have enough money to pay the full amount. A put option became valid Feb. 14, allowing bondholders the right to sell back the bonds to ProMOS.

“More than 50 percent of bondholders have indicated their acceptance of the tender offer or withdrawn their redemption request,” Hsinchu-based ProMOS said in a statement to the Singapore Stock Exchange today.

Those who accept the offer before the early tender deadline will be paid 20 percent of the principal, with an extra 3 percent offered if more than 82 percent of bondholders accept. The additional payout will rise to $65 per $1,000 principal if 86 percent accept by the early deadline, it said on Feb. 20.

The tender will fail if less than 79 percent of bondholders accept the offer by March 21, ProMOS said Feb. 20. That deadline is unchanged, it said today. Acceptance hasn't yet met the 79 percent minimum level, spokesman Ben Tseng said by phone today.

ProMOS had an operating loss, or sales minus the cost of goods sold and administrative expenses, of NT$24.5 billion (US$697 million) in 2008, the company said Feb. 19. Its cash dropped to NT$200 million as of Jan. 31 from NT$2.6 billion in June 2008, the company said.

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