Firstsource Solutions launches US$ 275 million FCCB issue

Firstsource Solutions Ltd has launched and priced a Zero coupon Foreign Currency Convertible Bonds ("FCCB") offering for an amount of US$ 275 million, subject inter alia to obtaining shareholder approval. The funds will be utilized towards the repayment of the US$ 275 million debt contracted at LIBOR plus 250 bps for its recent acquisition of MedAssist Holdings Inc.

The Issue Size is USD 275 Million. The Coupon Rate is 0.00% and Yield to Maturity is 6.75% p.a. calculated on semi annual basis.

The Reference Share Price is Rs 68.3654 per share (Volume weighted average price on NSE as on November 6, 2007) and the Conversion Premium : 35.00% above the reference share price.

The Conversion Price is fixed as Rs 92.2933 per share and the Pricing Date is November 06, 2007.

The Maturity Date is On or about December 04, 2012 (5 year & 1 day) and Closing / Settlement Date would be On or about December 03, 2007.

The issue of FCCBs is firmly underwritten and is subject to approval of shareholders of the Company at the Extra-ordinary General Meeting to be held on November 22, 2007.

The FCCBs are expected to be listed on the Singapore Exchange Securities Trading Ltd. JP Morgan and ICICI Bank acted as the joint book-runners to the transaction.

Source : Equity Bulls

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