Board Resolves to Issue Series 2 Offshore Unsecured Convertible Bonds
Original: 本公司董事會決議發行海外第二次無擔保可轉換公司債
Summary
Pegatron's Board of Directors has passed a resolution to issue its second tranche of offshore, unsecured convertible corporate bonds, a form of hybrid debt financing that gives bondholders the option to convert into equity. This is a material capital-markets event: it signals the company is raising funds in international debt markets and may create dilution risk for existing shareholders if the conversion option is exercised. Full terms (size, conversion price, maturity, use of proceeds) are available on MOPS.
Full Translation
Subject-line translation: 'The Company's Board of Directors has resolved to issue the Second Series of Overseas Unsecured Convertible Corporate Bonds.' — Pegatron (TWSE: 4938) announced that its Board has formally approved the issuance of a second series (第二次) of offshore (海外) convertible bonds (可轉換公司債) that are unsecured (無擔保), meaning no collateral backs the instrument. Convertible bonds allow holders to convert the debt into the issuer's common shares at a pre-set conversion price; if the share price rises above that price, conversion is economically rational, resulting in share dilution. Issuing offshore (typically in USD or another foreign currency) targets international institutional investors and is governed by foreign securities regulations rather than domestic TWSE rules alone. The first series having already been issued, this second series represents an additional round of the same financing structure. Investors should monitor the announcement body for: total issuance amount, conversion price, coupon rate, maturity date, and stated use of proceeds. [Body not available — subject line only. See MOPS for full announcement.]