Delta Electronics Issues $1.5 Billion Overseas Exchangeable Bonds to Strengthen Operational Funding

Delta Electronics (2308-TW) announced today (the 15th) that its Singapore subsidiary, DEISG, will issue a total of $1.5 billion (approximately NT$47.8 billion) in overseas exchangeable bonds, with shares held in Delta Electronics (Thailand) (DET) as the exchangeable asset. The raised funds will be used to strengthen operational capital for existing businesses and to support future expansion needs.

The exchangeable bonds are divided into two tranches: Tranche A and Tranche B. Tranche A has an issuance amount of $500 million and a maturity of one year. Tranche B has an issuance amount of $1 billion and a maturity of five years. Both tranches carry a 0% annual interest rate and are issued at 100% of face value.

The exchange period for these bonds is expected to begin on November 1, 2026. The initial exchange price for Tranche A is set at 266.80 Thai baht per share, representing a 15% premium over the reference price. For Tranche B, the initial exchange price is 301.60 Thai baht per share, reflecting a 30% premium over the reference price. Holders of Tranche A can initially exchange every $200,000 in principal for 24,856.8966 shares of DET stock, while Tranche B holders can exchange for 21,988.7931 shares. These amounts will be adjusted subsequently according to the bond terms.

Additionally, the maturity date for Tranche A is September 21, 2027, and for Tranche B, it is September 21, 2031. Notably, the redemption prices for both tranches at maturity are below par value. Tranche A will be redeemed at 98.01% of the issued principal, and Tranche B at 97.53%. Furthermore, holders of Tranche B have the right to require redemption of all or part of their bonds at 99.25% of principal after 1.5 years from issuance, and at 98.51% after three years.