Firstsource Solutions updates on redemtpion of $275 million FCCBs

The Board of Directors of Firstsource Solutions Ltd at its meeting held on September 17, 2012, have considered various options in relation to, US$ 275 Million Zero Coupon Convertible Bonds due for redemption on December 4, 2012, of which, bonds of face vaLue US$ 169.8 million which have a redemption value (as at the maturity date) of US$ 236.65 million are outstanding (the "Outstanding Bonds"), and accorded consent to adopt one or a combination of the options including full or part redemption (including premature redemption or buyback) of the Outstanding Bonds, extension of maturity of the Outstanding Bonds or exchange of the Outstanding Bonds, in part or in full, with new bonds such that the aggregate principal amount of such new bonds will not exceed US$ 120 Million.

The Board considered proposal to appoint J.P. Morgan as Advisor to present the advantages and disadvantages of the above mentioned options as well as explore new options for consideration of the Board and delegate powers in this regard to the Strategy Committee of the Board.

The Board also considered issue of new securities of the Company as the Board may determine after considering the prevailing market conditions and convene an Extra-Ordinary General Meeting of the shareholders of the Company to seek their approval for such issue of new securities.

The options, as above, are subject to receipt of regulatory and other approvals as may be required, including, approval of the Reserve Bank of India and the shareholders of the Company.

The Firstsource Solutions Ltd stock was trading at Rs.9.45, up by Rs.0.08 or 0.85%. The stock hit an intraday high of Rs.9.85 and low of Rs.9.30.

The total traded quantity was 3.35 lakhs compared to 2 week average of 3.88 lakhs.

Source : Equity Bulls

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