India's Gujarat NRE Coke to offer $50 million of 5-year 0% convertibles talked at 6.5%-7%, up 24.1927%

By Kenneth Lim

Boston, March 28 - India's Gujarat NRE Coke Ltd. plans to offer $50 million of five-year, zero-coupon convertible unsubordinated unsecured bonds talked to yield 6.5% to 7% with an initial conversion premium of 24.1927%.

There is also a greenshoe option of $10 million, and the deal was expected to price on Tuesday.

KBC Financial Products and Silverdale Services are running the books.

Pricing was scheduled for Tuesday.

The securities will be offered offered at par, and at the initial conversion ratio may be exchanged for Gujarat NRE stock at Rs. 125 per share. Gujarat NRE shares closed at Rs. 100.65 on Monday on the Bombay Stock Exchange. The redemption price will be between 137.68% to 141.05% of the principal.

The convertibles will be non-callable for three years, after which there is a soft-call threshold at 130% of the conversion price.

Gujarat NRE plans to list the convertibles in Luxembourg.

Kolkata-based Gujarat NRE is one of India's largest makers of low-ash metallurgical coke. It plans to use proceeds from the deal for investments in coking coal mines, capital expenditure on a Greenfield project in Dharwad and a 20 megaWatt captive power plant.

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