India's Strides talks $75 million five-year zero-coupon convertibles at 7.2%-7.95%, up 30%-35%

By Kenneth Lim

Boston, June 7 - India's Strides Arcolab Ltd. plans to price $75 million of five-year zero-coupon convertible unsubordinated unsecured bonds on June 26, talked to yield 7.2% to 7.95% with an initial conversion premium of 30% to 35%, the company said in a statement.

The convertibles were offered at par and will be redeemed at 142.456% to 147.701% of the principal upon maturity.

There is an over-allotment option for a further $25 million.

Barclays Capital is the bookrunner of the Regulation S offering.

The convertibles are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price.

Strides, a Bangalore, India-based pharmaceutical manufacturing company, said it will use the proceeds of the deal to fund capital expenditures, potential acquisitions and investments.

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