Gati Ltd,a city-based supply chain solutions provider today said the company has successfully closed the re-issue of its Foreign Currency Convertible Bonds (FCCB) aggregating to USD 22.182 million with Goldman Sachs International. The company has issued zero coupon FCCBs aggregating USD 22,182,000 to Goldman Sachs International with a yield to maturity of 5.76 per cent per annum compounding semi-annually,having a maturity of 5 years,Gati informed bourses in a statement. The new FCCBs are proposed to be listed on the Singapore Stock Exchange and the proceeds from the issue would be utilised towards redemption of the outstanding portion of the USD 20 million foreign currency convertible bonds raised in 2006 which are due for redemption in December,Managing Director and CEO of the company Mahendra Kumar Agarwal said in a statement. "The funds raised from the new FCCBs are being utilized to refinance the existing FCCBs and have helped company to meet its obligation well in time," Agarwal said. ICICI Securities Inc acted as the Lead Manager and Rajani Associates was the Legal Counsel to the FCCB Issue. DBR Credit Capital acted as advisor to the Issue. The new bonds envisages structured conversion mechanism at a premium over the reference price with the company having Right to Buy Back (Option) of the bonds. Further,the initial conversion price can be reset upwards on the infusion of equity through strategic partner/ investor,the company further said.
