Taiwan factory LED cash ready enough, enough to cover the redemption of convertible bonds

Since the second half of 2008 so far, LED shares fell, many companies convertible bond conversion price is lower than the market price of more than 5 of the convertible bonds face redemption pressure. However, such as the East Bay, billion light convertible bonds due in 2009 or executable sold back to the power company, are all ready, hand enough cash to cover the redemption of corporate bonds.

January 20th, closing price of only 9.42 Yuan East New Taiwan dollars, while the balance of the company's debt of NT $360 million, the conversion price of NT $18.9, closing price and convertible bond conversion price of 5 into a gap. A convertible East expires in June 2009, but the company plenty of cash on hand, although the stock price fell below the conversion price, do not worry about investors to redeem. Billion light second convertible bonds in October 2009 to implement the right to sell back, the latest conversion price of NT $78.17, and the closing price of 20 discount rate of up to 43%. Billion light two of the company's debt balance of NT $359 million, in the hands of billions of dollars in cash in the hands of more than NT $900 million conditions, in 2009 investors began to sell back to corporate bonds is not a problem.

In fact, because of the high growth of the LED industry in the past few years, companies are rushing to issue bonds, financing expansion capacity. 2009 have a maturity or started selling back right, because the LED stock price after wave correction, worth a cut, the stock investor to convert non premium space, will probably choose to hold to maturity, or can be sold back to the right execution, and sell it back to the company, so the company must take the cash redemption. Legal person said, despite the poor fundamentals in 2009, but the company's financial health is still known as LED, there are sufficient funds due to redemption pressure.