South Korea’s SK Hynix sets initial price guidance for dollar bond: term sheet

SOUTH Korea’s SK Hynix set the initial price guidance for a dollar bond deal on Monday (Jan 8), according to a term sheet seen by Reuters.

The bond could raise up to US$1 billion, Reuters reported last week, citing sources with direct knowledge of the matter.

The initial price guidance for a three-year, fixed-rate bond has been set at Treasuries plus 180 basis points (bps), the term sheet showed. A five-year bond initial price guidance is Treasuries plus 200 bps.

Investors have placed orders worth more than US$1.5 billion on Monday, according to a message sent by the deal’s bookrunners.

“We plan to use the proceedings from the bond issue to refinance the existing debt coming due. The issue amount will be determined according to market conditions,” SK Hynix said. REUTERS