STock Warrants
PEREGRINE Derivatives has issued 100 million covered warrants on 20 million HSBC Holdings shares, with settlement in stock only.
The issue was on a one-for-10 conversion basis at $1.57 each, with a strike price of $79.50.
HSBC closed down 50 cents at $80.50 yesterday despite rallying just before the close, putting the issue $1 in the money.
The issue's premium was 18.26 per cent with a gearing of 5.13 times and effective gearing of 3.38 times.
The implied volatility was 36 per cent. The issue matures on March 20, 1995.
This is the third covered warrant issue to have a stock settlement component, following Robert Fleming's 250 million warrant two-year issue on Hopewell Holdings two weeks ago and SBCI's 120 million warrant issue on HSBC.
