Orchid to raise $100 million to fund repayment of convertibles

By Angela McDaniels

Tacoma, Wash., Dec. 19 - Orchid Chemicals & Pharmaceuticals Ltd. received approval to raise $100 million to fund the repayment of its $117 million of zero-coupon foreign-currency convertible bonds when they mature in February 2012, according to a company announcement.

The company will use cash and $100 million of external commercial borrowings to cover the convertibles' principal and their yield to maturity.

"With over 85% of Orchid's sales being exports billed in [dollars], the company has a natural hedge against currency fluctuations," chairman and managing director K. Raghavendra Rao said in the announcement.

Orchid is a pharmaceutical company based in Chennai, India.

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