OSIM International

[Layman A]

http://www.businesstimes.com.sg/premium/...s-20140827

PUBLISHED AUGUST 27, 2014
OSIM plans S$200m convertible bonds

BYNISHA RAMCHANDANI
nishar@sph.com.sg @Nisha_BT

LIFESTYLE products group OSIM International is planning to issue up to S$200 million in five-year convertible bonds.
The principal amount includes an upsize option of S$50 million.
The zero-coupon convertible bonds due 2019 have a conversion price of S$3.525-S$3.737. This represents a conversion premium of 25-32.5 per cent to Tuesday's closing price of S$2.82 per share.
They also carry a redemption price of 106.43-110.46 per cent while the put price is at 103.81-106.15 per cent, with OSIM able to call the put option after year three.

Zero-coupon convertible bonds ??

Is there a typo error down here ?

What benefit the investor get in return other than risk ?

Who would subscribe to this funny instrument ?