Nissan raises $1.4 billion through convertible bond sale

Investing.com -- Nissan (OTC: NSANY) Motor Co. has raised ¥200 billion ($1.4 billion) through the sale of convertible bonds as the Japanese automaker seeks funds to maintain its operations, Bloomberg reported on Wednesday.

The convertible bonds will mature in 2031 and carry a 1% annual coupon, payable twice a year, according to a company filing. The bonds have an initial conversion price of ¥397.2, which represents a 30% premium above Nissan’s closing share price on Wednesday.

This bond sale, one of Japan’s largest in recent years, is part of Nissan’s broader strategy to raise more than ¥1 trillion and revitalize the company. CEO Ivan Espinosa, who took the position earlier this year, is working to refresh the automaker’s aging product lineup while addressing a significant loan repayment deadline coming next year.

Nissan stated on Monday that it plans to use the proceeds from the bond sale to invest in new products and technologies. The company is also planning to issue $4 billion in unsecured dollar- and euro-denominated junk bonds for general corporate purposes, including debt refinancing, according to the Bloomberg report.

The deal is being arranged by Bank of America Corp (NYSE: BAC)., Citigroup Inc (NYSE: C)., Mizuho Financial Group (NYSE: MFG) Inc., Morgan Stanley and SMBC Nikko Securities Inc.

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