Cranes raises euro 42 million through FCCB

Cranes Software, a global scientific and engineering software solutions provider, on Friday announced the closure of its euro 42 million offering of unsecured foreign currency convertible bonds. Barclays Capital is the sole bookrunner and lead manager for the offering.

According to Cranes, funds generated from this offering will be utilised towards further strengthening its financial structure, acquisition of IPs, businesses, products and companies, retirement of foreign currency term loans and capital expenditure.

"The investment will enable the company to reach focussed markets through its proprietary products, improved go-to-market strategies and further augment its growth in the enterprise-wide applications market," Cranes said in a statement.

The FCCBs issued by Cranes will have a tenure of five years and will be due in March 2011. These instruments carry a coupon rate of 2.5 per cent (payable semi-annually) and are convertible into ordinary equity shares or GDRs of Cranes at a premium of 35 per cent over the weighted average price of the Cranes stock on the Bombay Stock Exchange on the launch date 13th February, 2006. The bonds will have initial conversion price of Rs 143.293 per share. The FCCBs are intended to be listed on the Stock Exchange of Singapore.