Everest Kanto introduces USD 35 mn FCCBs
Everest Kanto introduces USD 35 mn FCCBs Everest Kanto Cylinder has introduced the USD 35 million foreign currency convertible bonds (FCCBs) due 2012 for import of plant and machinery to carry out its operations in India, and also for making investments in its subsidiaries / joint ventures abroad, for potential acquisitions and for such other purposes.
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The bonds will be convertible into the company or dinary shares, quoted in Indian Rupees (`Rs`).
>The bonds are expected to be zero coupon, carrying a yield to maturity of 7.25% per annum upon the conversion price to be set at a premium of 30% over the closing share price of Rs 233.35 of the company on the Bombay Stock Exchange on Oct. 01, 2007. The initial conversion price is fixed at Rs 303.36 a share.
Besides, bonds also carry a reset feature, which will come into effect on Oct. 09, 2008. On the reset date, if the average market price for 20 consecutive trading days immediately prior to Oct. 09, 2008 (the `reset date`) is less than the conversion price on the reset date, the conversion price shall be adjusted on the reset date to the prevailing share price, subject to higher of SEBI floor or 85% of the initial conversion price, the company said.
The bonds will be issued at par and redeemed at 142.80% on maturity. The bonds also carry a mandatory conversion feature at the option of the issuer. On or at any time after Oct. 09, 2010 (3 years) the issuer may require a mandatory conversion of the bonds in whole but not in part into s hares, provided that no such mandatory conversion may be made unless the closing price of the shares (translated into U.S. Dollars at the prevailing exchange rate) for each of the 30 consecutive trading days prior to the date upon which notice of such mandatory conversion is given, is at least 130% of the applicable early redemption amount divided by the applicable conversion ratio.
The bonds have been priced today and closing is expected on or about Oct. 10, 2007. The Singapore Stock Exchange has given in-principal approval for the listing of the bonds, the company added.
Shares of the company gained Rs 7.65, or 3.28% to trade at Rs 241.00. The total volume of shares traded was 117,378 at the BSE. (10.42 a.m., Wednesday)
