By Kenneth Lim
Boston, June 21 - Tata Motors Ltd. priced $450 million of five-year zero-coupon convertible bonds on Thursday to yield 5.6% with an initial conversion premium of 40%.
The convertibles were offered at par.
Citigroup and JPMorgan were the bookrunners of the Regulation S offering.
The bonds are convertible at the option of the company into Tata common stock, American Depositary Shares or qualifying securities, which could be depository receipts with different voting and dividend rights.
Mumbai, India-based Tata, India's largest auto maker, said the proceeds of the deal will be used to fund capital and product development expenditures and for other corporate purposes.
| Issuer: | Tata Motors Ltd.
|
| Issue: | Convertible bonds
|
| Bookrunners: | Citigroup and JPMorgan
|
| Amount: | $450 million
|
| Maturity: | 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Redemption price: | 131.82%
|
| Yield: | 5.6%
|
| Conversion premium: | 40%
|
| Conversion price: | Rs. 960.96
|
| Pricing date: | June 21
|
| Distribution: | Regulation S
|
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