Source disclosure: January 09, 2026
Ferrotec Corporation [6890.T]
TOKYO, Jan 09 (Pulse News Wire) – Ferrotec Corporation (6890.T) disclosed supplementary information on its euro-yen convertible bonds due 2028, which were issued on June 23, 2023. The issuance amount was ¥246.7 billion.
The company set the conversion price higher than the market value at issuance to minimize earnings dilution initially while considering existing shareholders. Additionally, the bond includes a soft call option allowing early redemption if the stock price exceeds 130% of the conversion price for 20 consecutive trading days. This provision aims to encourage conversion to common shares, enhancing future capital strength. Ferrotec also incorporated a dividend protection clause adjusting the conversion price based on dividends paid out.
This adjustment could increase the likelihood of triggering the soft call option depending on stock price levels. The funds raised will be utilized for various projects, including factory construction and equipment investments in Malaysia, Ishikawa Prefecture, Kumamoto Prefecture, and Toyama City. In addition, the company highlighted potential impacts on share dilution and capital structure upon conversion. Detailed calculations showed changes in diluted earnings per share and adjustments to equity components such as capital reserves and retained earnings.
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