Essar Energy greenshoe lifts convertibles due 2016 to $550 million

By Melissa Kory

Cleveland, Jan. 27 - Essar Energy plc said underwriters exercised in full the $50 million over-allotment option, lifting the offering of convertibles due 2016 to $550 million.

A wholly owned subsidiary of Essar Energy priced $500 million of the five-year exchangeable bonds on Jan. 18 at the cheap end of talk to yield 4.25% with an initial exchange premium of 30%.

The notes were offered by Essar Energy Investment Ltd. at par and may be exchanged into common stock of the parent company.

Deutsche Bank AG, London Branch, J.P. Morgan Securities Ltd. and Standard Chartered Bank were the bookrunners of the offering.

Essar is a London-based energy company that does business mostly in India.

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