Strides Arcolab successfully completes the US$ 100 million Convertible Bond Issue

Strides Arcolab Ltd has announced that the terms for their US $ 100 million bonds due 2012 have been fixed as follows:

- initial conversion price is Rs 461.553 per share, which represents a 32.5 per cent premium over the volume weighted average price from opening trade to pricing of Rs 348.342 on the National Stock Exchange of India Ltd.

- the yield to maturity has been set at 7.575 per cent.

- the Bonds will be redeemed at 145.058 per cent at par on June 27, 2012.

The Lead Manager has exercised the US$ 25 million increase option.

Application will be made for the Bonds to be listed on the Stock Exchange of Singapore and for in-principle approval for the shares to be issued upon conversion of the Bonds to be listed on the NSE and The Bombay Stock Exchange.

Speaking on the occasion, Arun Kumar, Vice Chairman and Managing Director, stated "We are delighted that this issue has generated strong demand and was over subscribed, reflecting a high level of confidence at the investors in the Company's strategy and niche business model".

Barclays Capital is the Sole Bookrunner and Lead Manager for the offering. State Bank of India is the Financial Advisor to the issue.

Source : Equity Bulls

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