Prime Focus Launches USD 55 million Zero Coupon FCCBs

Prime Focus Ltd on December 07, 2007 has announced the launch of up to USD 55 million unsubordinated unsecured foreign currency convertible bonds due 2012 (the "Bonds"). The Bonds will be convertible into ordinary shares of the Company, quoted in Indian Rupees and listed on the Bombay Stock Exchange and the National Stock Exchange.

The zero-coupon Bonds have a tenor of 5 years and one day, are expected to have an initial conversion premium of 20% to 25% and a yield to maturity of 6.90% to 7.40% per annum calculated on a semi-annual basis. The Bonds will be issued at 100% and will be redeemed at 140.40% to 143.83%. The Bonds will not be callable by the Company for the first three years. Thereafter, the Company has the right to redeem all the outstanding Bonds, subject to applicable law, at their early redemption price if the closing price of the shares for 20 out of 30 consecutive trading days is greater than 130% of the early redemption amount divided by the applicable conversion ratio.

The Bonds are expected to price today and closing is expected on or about December 15, 2007. The Bonds will be sold under the Reg S

Application has been made for the Bonds to be admitted and to be listed on the Singapore Stock Exchange.

All or substantially all of the net proceeds of this offering will be used for (i) strategic acquisitions and / or strategic alliances outside of India, (ii) for investment into wholly owned subsidiaries and / or joint ventures outside of India (iii) or for foreign currency capital expenditure, or for any other use as may be permitted under applicable laws or regulations from time to time.

KBC Financial Products UK Ltd and Kotak Mahindra (UK) Ltd are Joint Lead Managers for the offering.

Source : Equity Bulls

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