JSW Steel to raise upto US$325 million through FCCB Issue

JSW Steel Ltd has announced that the Board of Directors at its Meeting held on April 18, 2005 had authorised the Finance Committee of Directors to decide on all matters relating to the proposed issuance of Foreign Currency Convertible Bonds (FCCBs) including finalisation and approval of the detailed terms of issue and number of FCCBs to be issued. Approval of the Members was also sought and obtained for the proposed issuance in the 11th Annual General Meeting held on June 13, 2005.

Further the Company has informed that, in pursuance of the above, the Finance Committee of Directors at its meeting held on May 29, 2007, has decided to launch an issue of FCCBs of an aggregate value not exceeding US$ 325 million.

The Company is pleased to inform that FCCB issue has been priced at the following broad terms:

1. Amount: US$ 325 million
2. Conversion price: Rs 953.40 per share (50% premium over the closing price of Rs 635.60 on the National Stock Exchange on May 29, 2007)
3. Coupon: 0%
4. Tenure: 5 years 1 day
5. Yield to maturity: 7.25% p.a calculated on a semi annual basis payable on maturity, if not converted in to shares during the tenure of the Bond.
6. Listing: Singapore Stock Exchange (Proposed)

The issue is priced on the above terms with a closing date as June 27, 2007, subject to the Company complying with certain conditions, namely; getting in-principle approval for listing of the equity shares to be issued upon conversion of the FCCBs from Indian Stock Exchanges, approval of Singapore Stock Exchange for listing of Bonds, issue of offering circular, other consents etc.

ABN AMRO Rothschild and Citigroup are the joint book runners and lead managers for the offering.

Source : Equity Bulls

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