Resonac's Petrochemical Carve-out Forces an Automatic Reset of Its Convertible Bond Price
The number: Resonac will hand shareholders more than 80% of Culasus Chemical, its ¥300.3bn petrochemical unit, on October 1. The catch: the same carve-out triggers a formulaic cut to the conversion price on Resonac's 2028 euro-yen convertible bonds, sized by a five-day trading comparison between the two stocks from September 29 to October 5. The board still has to vote on the spin-off in late August, and the exact price adjustment won't be known until after that trading window closes.