By Rebecca Melvin
New York, Oct. 15 - Sterlite Industries (India) Ltd. priced $500 million of five-year convertibles Thursday after the market close to yield 4% with an initial conversion premium of 37.5%, according to a syndicate source.
The Securities and Exchange Commission-registered notes, which were launched during the session, priced at the cheap end of talk for the coupon, which was 3.5% to 4%, and near the rich end of talk of 30% to 40% for the premium.
Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc. were joint bookrunners.
The senior notes, which will be convertible into Sterlite's American Depositary Shares, will be non-callable for three years, and provisionally callable after that subject to a 130% price trigger.
Closing is seen by Oct. 29.
Sterlite will use proceeds to expand its copper business and acquire complementary businesses outside India.
Mumbai, India-based Sterlite operates an international non-ferrous metals and mining company.
| Issuer: | Sterlite Industries (India) Ltd.
|
| Issue: | Convertible senior notes
|
| Amount: | $500 million
|
| Maturity: | October 2014
|
| Bookrunners: | Deutsche Bank and Morgan Stanley
|
| Coupon: | 4%
|
| Price: | Par, $1,000
|
| Yield: | 4%
|
| Conversion premium: | 37.5%
|
| Call protection: | Non-callable for three years, then provisionally callable at a 130% trigger
|
| Price talk: | 3.5%-4%, up 30%-40%
|
| Takeover protection: | Yes
|
| Pricing date: | Oct. 15
|
| Settlement: | Oct. 29 |
|
| Distribution: | Registered
|
| Stock symbol: | ADRs: SLT
|
| Stock reference price: | $16.965
|
© 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.
