By Rebecca Melvin
Princeton, N.J., Feb. 8 - India's Panacea Biotec Ltd. priced $100 million of five-year-plus-one-day convertibles in two tranches, with sliding conversion prices based on the future price of the underlying equity shares, the company said in a news release.
The foreign currency convertibles bonds were sold under Regulation S via bookrunner Merrill Lynch International.
The first tranche was upsized to $50 million from $35 million. It priced at par to yield 4.5% with a conversion price based on the greater of 85% of the reference price and the floor price, which is subject to a maximum of the ceiling price.
The conversion price ceiling is Rs. 675.25, or 250% of the closing price of Panacea Biotec shares on Feb. 7. The floor is Rs. 264.74.
The bonds are non-callable for six months and are convertible thereafter at a trigger of 125% of the conversion price. There are no puts.
The second tranche was also upsized to $50 million from $35 million. It priced at par to yield 7.25% for the coupon with a conversion price that is the greater of 110% of the reference price and the floor price.
The conversion price ceiling is the same as in tranche one; but the conversion price floor is Rs. 270.1, or the closing price of the underlying shares on Feb. 7.
The notes are non-callable for one year and are convertible thereafter at a trigger of 130% of the accreted conversion price for any consecutive 20 trading days. There are no puts.
Mumbai, India-based Panacea Biotec is a maker and marketer of vaccines and biotechnology-based products.
| Issuer: | Panacea Biotec Ltd.
|
| Issue: | Foreign currency convertible bonds
|
| Amount: | $100 million in two tranches
|
| Bookrunner: | Merrill Lynch International
|
| Maturity: | 2011
|
| Trade date: | Feb. 8
|
| Settlement date: | Feb. 13
|
|
|
| Tranche 1
|
| Amount: | $50 million
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Redemption price: | 100%
|
| Conversion price: | The greater of (i) 85% of the reference price and the (ii) floor conversion price, subject to a maximum of the ceiling price
|
| Reference price: | Average of the volume-weighted average price of the fourth, fifth and sixth month after issue
|
| Conversion price ceiling: | Rs. 675.25, 250% of the Feb. 7 closing price
|
| Conversion price floor: | Rs. 264.74
|
| Calls: | Non-callable for six months, thereafter at a 125% trigger
|
| Puts: | None
|
|
|
| Tranche 2
|
| Amount: | $50 million
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 7.25%
|
| Redemption price: | 142.80%
|
| Conversion price: | The greater of 110% of the reference price and the floor price, subject to a maximum of the ceiling price
|
| Reference price: | Average of the volume-weighed average price for the fourth, fifth, and sixth month after issue
|
| Conversion price ceiling: | Rs. 675.25, 250% of the Feb. 7 closing price
|
| Conversion price floor: | Rs. 270.1, the Feb. 7 closing price
|
| Calls: | Non-callable for one year, thereafter at a 130% trigger
|
| Puts: | None
|
|
|
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