Amtek Auto raises US$ 65 million through 5.625% FCCBs

Amtek Auto Limited (the "Company") has on September 11, 2009 priced a proposed Foreign Currency Convertible Bonds ("FCCBs") issuance for an amount of US$65 million with an option to upsize the issue for an additional amount of US$110 million. The FCCBs which have a maturity of 5 years and 1 day, are convertible at the initial conversion price of Rs 148.40 per share (as adjusted from time to time). The FCCBs will bear a coupon of 5.625% payable on a semi-annual basis. If not previously converted, redeemed or repurchased, the FCCBs will be redeemable at their specified maturity at 100% of their principal amount together with accrued interest. The FCCBs are expected to be issued and settled by the end of September 2009 and subsequently listed on the Singapore Exchange Securities Trading Ltd., (the "SGX-ST") subject to receipt of approval from the SGX-ST. The company has its board and shareholder approvals to undertake a further issue of equity shares, GDRs, ADRs, FCCBs and / or any other securities convertible into or linked to Equity Shares up to a maximum amount of US$175 million. The issue of the FCCBs is subject to satisfaction of customary conditions precedent outlined int he confirmation letters entered into with proposed investors.

The company intends to use the FCCB proceeds to redeem / repay certain of its existing debt and will use any remaining balance for purposes permitted by applicable law.

Application will be made for the FCCBs to be listed on the SGX-ST. The company has received in-principle approval for the shares to be issued upon conversion of the FCCBs to be listed on the NSE and BSE.

Jefferies International Limited is the sole Bookrunner and Sole Lead Manager for the offering of the FCCBs. Jefferies International Limited is authorised and regulated in the United Kingdom by the Financial Services Authority.

The stock was trading at Rs.189, down by Rs.7.30 or 3.72%. The stock hit an intraday high of Rs.198 and low of Rs.186.

The total traded quantity was 151693 compared to 2 week average of 1213406.

Source : Equity Bulls

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