Delta raised $1.5 billion at 0% by selling the upside on its own subsidiary
A Delta shareholder banked US$1.5 billion through zero-coupon exchangeable bonds against the Thai unit's shares, taking cash today while bondholders carry the entire equity risk. Operators in the same build-out are paying 2.875 to 9.25 percent for their money.
Vincent Jiang · 3 min read
Zero coupon, two strikes, US$1.5 billion
On 15 September 2026, Delta Electronics International Singapore, a shareholder of Delta Electronics (Thailand), proposed US$1.5 billion of overseas exchangeable bonds: US$500 million due 2027 and US$1.0 billion due 2031, neither paying a cent of interest 1. The Taiwan parent cleared the deal by board resolution on 14 September and filed the terms with the Taiwan Stock Exchange 5. Holders swap paper for shares at THB 266.80 and THB 301.60, premiums of 15 and 30 percent over the THB 256 close on 23 September 1. By Friday 25 September the stock stood at THB 262 2.
The buyer carries every baht of the risk
The bonds pay no interest, so the entire return is the option on DELTA shares 1. Full exchange hands over 172.1 million existing shares, 1.38 percent of the company: no new stock, no dilution, and US$1.5 billion of cash to the seller today 1. There is no yield cushion anywhere in the structure.
September priced the rest of the AI financing stack. Vistra paid 7.00 and 7.25 percent for US$1.5 billion of 31-year money due 2057 6. CoreWeave paid 2.875 percent on a US$3.7 billion convertible while carrying 9.25 percent senior notes due 2030 7. Meta rents capacity from a US$27 billion Louisiana venture it owns one-fifth of, a project now headed past US$50 billion 89. Interest is the operators' bill. The supplier tier sold upside instead.
Delta raised $1.5B at a 0% coupon the same month operators paid up to 9.25%
Data
| Cash coupon | |
|---|---|
| Delta exchangeable (2031) | 0% |
| CoreWeave convertible (2033) | 2.88% |
| Vistra junior subordinated (2057) | 7.25% |
| CoreWeave senior (2030) | 9.25% |
These buyers were paid last time
The case under the option is rack power. Morgan Stanley lifted its Vera Rubin rack assumption to 234kW from 149kW, Rubin Ultra to 600kW from 415kW, and now sees 52GW of global rack demand by 2028 2. Kiatnakin Phatra expects a record THB 10 billion third-quarter profit on a 31 percent gross margin 2. Mitsubishi Electric shipped NVIDIA NVL724-ready power and cooling reference designs in the same week 4.
Morgan Stanley lifted its rack power assumptions by up to 57 percent
- Previous assumption
- Revised assumption
Data
| Previous assumption | Revised assumption | |
|---|---|---|
| Vera Rubin rack | 149kW | 234kW |
| Rubin Ultra rack | 415kW | 600kW |
The house has run this play before. In January 2025 the group sold US$525 million of identical zero-coupon paper with a THB 187.6 strike while the stock traded near THB 139 5. At THB 256, that strike is cleared by more than a third: the last batch of buyers was paid 15.
The 2025 strike is a third in the money today, the new ones are not yet
Data
| Delta Electronics (Thailand) share price | |
|---|---|
| Stock close, Jan 2025 | THB 139 |
| 2025 bond strike | THB 187.6 |
| Stock close, 23 Sep 2026 | THB 256 |
| Stock close, 25 Sep 2026 | THB 262 |
| 2027 bond strike | THB 266.8 |
| 2031 bond strike | THB 301.6 |
First test on 28 October
The Taiwan parent trades at TWD 1,910, more than double its 52-week low of TWD 837 and 26 percent under its TWD 2,585 high, on a TWD 4.96 trillion market value 3. Third-quarter results land on 28 October 2026 3. The 2027 strike sits about 2 percent above the last close. If the power cycle holds, the sellers keep the cash and the buyers keep the gains. If it stalls, only one side keeps anything.
How this brief was made
01Gathered & sourced345 channels · 2,267 articles▾
Agents swept 345 channels and ingested 2,267 articles, then de-duplicated and ranked them for signal.
02Verified & cross-validated9 claims · 13 data feeds▾
Every one of 9 load-bearing claims was checked against primary sources, with 13 live data feeds reconciling the figures and charts.
- 1Ad Hoc News, Delta Electronics Thailand stock absorbs USD 1.5 billion bond deal, 24 September 2026
- 2Kaohoon International, DELTA Surges 3% as AI Investment Cycle Powers Next Growth Phase, 25 September 2026
- 3Ad Hoc News, Delta Electronics stock absorbs August sales at TWD 1,910, 25 September 2026
- 4Mitsubishi Electric, Mitsubishi Electric Unveils NVIDIA AI Infrastructure-compatible Reference Designs for Next-generation AI Data Centers, 24 September 2026
- 5Kaohoon International, exchangeable-bond coverage index: DELTA Free Float to Rise 1.4% as Delta Taiwan Fixes $1.5bn Exchangeable Bond Terms (15 September 2026) and DELTA Falls 6% amid Big-Lot Transaction after EB Offering (14 January 2025)
- 6Vistra Corp. (PRNewswire), Vistra Prices Registered Offering of $1.5 Billion of Junior Subordinated Notes, 10 September 2026
- 7Business Wire, CoreWeave Prices Upsized $3.7 Billion Convertible Senior Notes Offering, 18 September 2026
- 8CNBC, Meta's Louisiana data center investment to reach $50 billion, aided by generous tax incentives, 13 July 2026
- 9Yahoo Finance (GuruFocus), Meta's $27 Billion AI Risk Hides Off Balance Sheet, 14 August 2026
03Reviewed & edited2 human editors▾
2 editors read the draft against the evidence, tuned the framing, and signed off before it shipped.
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