Sankyo Tateyama, Inc. (TSE:5932) announced a private placement of convertible bonds for gross proceeds of ¥15,075,000,000 with existing investor, Deutsche Securities Inc., Investment Arm on May 20, 2015. The transaction will take place through third party allotment. The company will issue 1st series and 2nd series convertible bonds with warrants in the transaction.

The bonds do not carry any interest rate. The 1st series bonds will be converted into common shares of the company at a fixed conversion price of ¥2,569 per share and 2nd series bonds will be converted into common shares of the company at a fixed conversion price of ¥2,686 per share. The 1st series bonds will mature on June 5, 2018 and 2nd series bonds will mature on June 5, 2020.

The holders of 1st series warrants can make exercise claims any time between June 12, 2015 and May 29, 2018. The holders of 2nd series warrants can make exercise claims any time between June 12, 2015 and May 29, 2020. The net proceeds from the transaction will be ¥15,048,000,000, after deduction of various issue expenses of ¥27,000,000, including legal fees, registration costs, fiscal agent fees, and costs for the calculation of the securities by independent valuation institutions.

No issuance of common shares will be done without a prior written approval from the investor during the period which lasts for 180 days after the payment date. The investor's voting rights in the company will increase from 0.04% to 15.84%. The transaction will close on June 5, 2015.