Oct. 6 (Bloomberg) -- The bonds of Global A&T Electronics Ltd. fell the most since being issued in January after selling an additional $502.3 million of secured notes, diluting the collateral tied to the initial transaction.
The Singapore-based semiconductor tester’s $625 million of first-lien debentures due 2019 dropped 19.5 cents on the dollar to 69.5 cents for the week ended Oct. 4, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Those securities traded at a high this year of 109 cents on April 11.
The offering resulted in “massive collateral dilution” for the debt outstanding, Adam Cohen, the founder of research firm Covenant Review LLC, wrote in an Oct. 4 report.
Standard & Poor’s gave the new notes a B rating, according to an Oct. 4 report.
--Editors: Sylvia Wier, Nancy Moran