UPDATE 1-POSCO raising 52.8 bln yen in exchangeables-source
(Adds details, background)
HONG KONG, Aug 7 (Reuters) - South Korea's POSCO (005490.KS), the world's No.4 steelmaker, was on Thursday selling 52.795 billion yen ($482.2 million) worth of bonds exchangeable for U.S.-listed shares in SK Telecom (017670.KS) (SKM.N), a source familiar the deal said on Thursday.
The five-year, zero-coupon bonds are guaranteed by POSCO and exchangeable for shares in South Korea's SK Telecom at a 23 percent premium to the American Depositary Receipt's Wednesday closing price of $22.29.
The bonds, which have a put option after three years, have a yield to maturity of 0 to 0.3 percent.
Last month, POSCO said it planned to issue 49.3 billion in overseas debt to refinance maturing exchangeable bonds.
In 2003, POSCO sold 51.6 billion yen of bonds exchangeable into 1.7 million shares of SK Telecom (017670.KS) owned by POSCO.
Analysts expect POSCO to sell more bonds later this year, as the steelmaker has said it is interested in bidding for Daewoo Shipbuilding and Marine Engineering (042660.KS), which will be put up for sale by its top shareholders in the second half.
The planned sale of a 50.4 percent stake in the world's third-largest shipbuilder could be the country's biggest M&A transaction this year and is expected to fetch roughly $4 billion.
ABN AMRO, Citigroup (C.N), Deutsche Bank (DBKGn.DE) and Goldman Sachs (GS.N) were handling the exchangeable bond sale. (US$=109.46 yen) (Reporting by Tony Munroe; Editing by David Holmes) (tony.munroe@reuters.com; Reuters Messaging: tony.munroe.reuters.com@reuters.net; +852 2843 6358, Fax +852 2845 0636))
