India's Panacea to exercise mandatory conversion of 4.5% convertibles

By Angela McDaniels

Seattle, Oct. 9 - Panacea Biotec Ltd. has decided to exercise the option for mandatory conversion of its $50 million 4.5% foreign-currency convertible bonds due 2011, according to a company news release.

The bonds have a sliding conversion price that is the greater of (i) 85% of the reference price and (ii) the floor conversion price of Rs. 264.74, subject to a ceiling price of Rs. 675.25. The reference price is the average of the volume-weighted average price of the fourth, fifth and sixth month after issue. The bonds were issued in February 2006.

The company's shares closed at Rs. 388.60 (NSE: PanaceaBI.NS) on Friday.

Mumbai, India-based Panacea Biotec makes and markets vaccines and biotechnology-based products.

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