By Rebecca Melvin
New York, Sept. 25 - Sesa Goa Ltd. priced $500 million of foreign currency convertible bonds at par to yield 5% with an initial conversion premium of 28%, according to a news release.
Goldman Sachs (Asia) LLC and Morgan Stanley & Co. International plc were joint bookrunners of the offering that will be used to expand the company's mining operations, for exploration for new resources, and to further develop its pig iron and metallurgical coke operations.
The bonds will be convertible into equity shares of the company at a conversion price that has been set at Rs. 346.88 per share, representing a premium of 28% to the reference price of Rs. 271.00 per share.
The proposed offering is subject to shareholder approval at an extraordinary general meeting set for Oct. 20. Settlement is expected to occur shortly thereafter, once all necessary approvals have been obtained.
Sesa Goa, a subsidiary of Vedanta Resources plc, is an iron ore producer and exporter, based in Panaji, India.
| Issuer: | Sesa Goa Ltd.
|
| Issue: | Foreign currency convertible bonds
|
| Amount: | $500 million
|
| Bookrunners: | Goldman Sachs (Asia) LLC and Morgan Stanley & Co. International plc
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 28%
|
| Conversion price: | Rs. 346.88
|
| Pricing date: | Sept. 25
|
| Proposed settlement date: | Oct. 20
|
| Stock reference price: | Rs. 271.00
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
