By Evan Weinberger
New York, Oct. 3 - Everest Kanto Cylinder Ltd. priced $35 million in zero-coupon foreign currency convertible bonds due Oct. 10, 2012 to yield 7.25% with an initial conversion premium of 30%.
Citigroup Global Markets is the bookrunner of the Regulation S transaction.
The convertibles will be redeemed at 142.8010% of par at maturity. The deal is expected to close on Oct. 10.
The convertibles have a conversion price of Rs 303.36.
The convertibles carry a reset feature that will become active on Oct. 9, 2008 subject to a floor of 85% of the initial conversion price. Beginning Oct. 9, 2010, there is a contingent conversion subject to a 130% hurdle.
Everest Kanto is a Mumbai, India-based industrial cylinder producer. The company plans to use the proceeds to import plant and machinery into India, for investments in subsidiaries and joint ventures or potential acquisitions outside India and for general corporate purposes.
Issuer: Everest Kanto Cylinder Ltd.
Issue: Foreign currency convertible bonds
Amount: $35 million
Maturity: Oct. 10, 2012
Coupon: 0%
Price: Par
Redemption price: 142.8010%
Yield: 7.25%
| Conversion premium: | 30%
|
| Conversion price: | Rs 303.36
|
| Reset: | Beginning Oct. 9, 2008 subject to an 85% floor of the initial conversion price
|
| Contingent conversion: | Subject to a 130% hurdle beginning Oct. 9, 2010
|
| Bookrunner: | Citigroup Global Markets
|
| Distribution: | Regulation S
|
| Settlement date: | Oct. 10
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
