New Issue: India's Larsen & Toubro prices $125 million convertibles to yield 4%, up 35%

New York, Nov. 2 - Larsen & Toubro Ltd. priced $125 million of five-year convertible bonds to yield 4% with a 35% initial conversion premium.

The deal came at the cheap end of talk, which put the yield at 3.5% to 4% and the conversion premium at 35% to 40%.

Citigroup and ABN Amro were bookrunners for the Regulation S deal.

Larsen & Toubro, a Mumbai, India, engineering and construction company, will use proceeds for capital expenditures, acquisitions and other purposes.

Issuer:	Larsen & Toubro Ltd.
Issue:	Convertible bonds
Amount:	$125 million
Maturity:	Nov. 30, 2009
Coupon:	1.25%
Price:	Par
Redemption price:	114.90%
Yield:	4%
Initial conversion premium:	35%
Conversion price:	Rs. 1,122.80 (into GDRs)
Call:	After 3 years, subject to 130% hurdle
Pricing:	Nov. 1, after close
Bookrunners:	Citigroup, ABN Amro
Talk:	3.5% to 4% yield, 35%-40% conversion premium
Distribution:	Regulation S

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