NEC Convertible Garners Japan Deal Awards
Morgan Stanley's JPY100 billion convertible offering for NEC, Japan's leading electronics conglomerate, was awarded both IFR's "Asia-Pacific Equity-Linked Issue of the Year 2001" and Asiamoney's "Japan Equity-Linked Deal of the Year."
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Morgan Stanley's JPY100 billion convertible offering for NEC, Japan's leading electronics
conglomerate, was awarded both IFR's "Asia-Pacific Equity-Linked Issue of the Year
2001" and Asiamoney's "Japan Equity-Linked Deal of the Year." Morgan Stanley served
as a Joint Bookrunner and Joint Lead Manager on the offering, which was completed in
December 2001, together with Daiwa Securities SMBC.
The Euroyen convertible offering achieved the best terms ever for a Japanese issuer in
the domestic or international convertible markets. The deal, NEC's first international
Yen convertible, was also the largest convertible offering completed by a Japanese
issuer in 2001 and was when priced on November 20, 2001 the largest equity-related
offering completed by a Japanese issuer after September 11.
"Japanese companies have generally issued domestic retail-market oriented
convertibles on less favorable terms than would have been the case by going to the
international markets," said Christopher Mothersill, Head of Equity Capital Markets in
Tokyo. "In part, this has been because of their existing relationships with domestic
securities houses and concerns about the impact on their share price of hedge funds'
trading activities."
Morgan Stanley's global strength in convertibles and knowledge of equity-linked
investors gave the client the confidence that they would be able to benefit from the
more favorable pricing of an international transaction and the ability to place the
offering with long-term investors.
"The transaction, which was multiple times oversubscribed, met all of the objectives of
our client and set the new pricing benchmark for Japanese convertibles," said
Mothersill. "Reflecting the positive market reaction to the transaction, NEC's stock price
increased 9.5% from the launch of the deal to pricing."
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