By Rebecca Melvin
Princeton, N.J., March 29 - Gujarat NRE Coke Ltd. priced $60 million of zero-coupon foreign currency convertible bonds at par to yield 6.75%, with an initial conversion premium of 24.1927%, according to a company release. The amount included a $10 million over-allotment option that was fully exercised.
The unsubordinated unsecured convertibles priced at the midpoint of talk for the yield, which was 6.5% to 7%. The redemption price was set at 139.36% of the principal, which was the midpoint of talk of 137.68% to 141.05%.
KBC Financial Products UK Ltd. and Silverdale Services Ltd. were joint lead managers for the deal.
The convertibles will be non-callable for three years, after which there is a soft-call threshold at 130% of the conversion price.
Proceeds are earmarked for investments in coking coal mines, for capital expenditure on a Greenfield project in Dharwad and a 20-megawatt power plant.
Gujarat NRE, based in Kolkata, is one of India's largest makers of low-ash metallurgical coke.
| Issuer: | Gujarat NRE Coke Ltd.
|
| Issue: | Foreign currency convertible bonds
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| Amount: | $50 million
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| Greenshoe: | $10 million (fully exercised)
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| Maturity: | April 2011
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| Coupon: | 0%
|
| Price: | Par
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| Yield: | 6.75%
|
| Conversion premium: | 24.1927%
|
| Conversion price: | Rs. 125
|
| Conversion ratio: | 8.0
|
| Call features: | Non-callable for three years, then with soft-call threshold at 130% of the conversion price
|
| Bookrunners: | KBC Financial Products UK Ltd. and Silverdale Services Ltd.
|
| Pricing date: | March 29
|
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