1999 Annual Report - Delta Electronics

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6) Short-term loans
Unsecured bank loans
Secured bank loans
Materials import loans
Credit lines
Interest rates per annum
7) Convertible bonds
A. First foreign currency Europe convertible bonds
Convertible bonds (at par value)
Add: Interest payable on redemption
Valuation on foreign currency
A) On January 23, and February 27, 1997, following the approval from the Securities and Futures Commission
(SFC), the Company issued 0.5% (net of tax) convertible bonds in the amount of US$110,000 thousand dollars.
These convertible bonds cover a period of seven years and interest is payable annually on December 28 of each
year.
In accordance with the "Rules Governing Issuance and Conversion of Bonds," the investors may convert the
bonds into the Company's common stock from April 6, 1997 to February 6, 2004. The unconverted bonds will
be repaid at par value on maturity. The bonds converted to common stocks were US$107,284 thousand dollars
and US$64,729 thousand dollars as of December 31, 1999 and 1998, respectively.
The conversion price was initially set at $110 (dollars) per share on the issuance date, which was subsequently
adjusted for capital increase. As of December 31, 1999 and 1998, the adjusted conversion prices were
NT$63.6 (dollars) and NT$76.4 (dollars) per share, respectively.
The investors may require the Company to redeem the bonds for cash at 137.39% of the bonds principal
amount from March 6, 2002.
B) The difference between the redemption price and the par value of bonds, recognized by the Company as
interest expense and Interest Payable on Redemption, using the effective interest method in 1999 and 1998
were $76,112 and $138,584, respectively.
B. Second foreign currency Europe convertible bonds
Convertible bonds (at par value)
Add: Interest payable on redemption
Valuation on foreign currency
December 31,
1999 1998
December 31,
1999 1998
December 31,
1999 1998
A) On January 13 1999, following the approval from the SFC, the Company issued 1% (net of tax) convertible
bonds in the amount of US$100,000 thousand dollars. These convertible bonds cover a period of seven years
and interest is payable annually on December 28 of each year.
In accordance with the "Rules Governing Issuance and Conversion of Bonds," the investors may convert the
bonds into the Company's common stock from March 23, 1999 to January 23, 2006. The unconverted bonds
will be repaid at par value on maturity. The bonds converted to common stock were US$97,780 thousand
dollars as of December 31, 1999.