Firstsource launches $275 mn FCCB issue

Firstsource Solutions Limited, among India's leading pure-play BPO companies, announced that it has launched and priced a Zero coupon Foreign Currency Convertible Bonds ("FCCB") offering for an amount of US$ 275 million, subject inter alia to obtaining shareholder approval. The funds will be utilized towards the repayment of the US$ 275 million debt contracted at LIBOR plus 250 bps for its recent acquisition of MedAssist Holdings Inc.

The FCCBs, which have a maturity of 5 years and 1 day, are convertible at a conversion price of Rs. 92.2933 per share, which is at a premium of 35% over the volume weighted average price of Rs 68.3654 on NSE on November 6, 2007. The FCCBs, if not converted into shares during the period, will be redeemable on expiry at a yield to maturity of 6.75% per annum, calculated on a semi-annual basis. The FCCBs are expected to be listed on the Singapore Exchange Securities Trading Ltd. JP Morgan and ICICI Bank acted as the joint book-runners to the transaction.

ABOUT FIRSTSOURCE

Firstsource (NSE: FSL, BSE: 532809, Reuters: FISO.BO, Bloomberg: FSOL@IN) is among India's leading BPO (business process outsourcing) service providers. Firstsource provides customized business process management to global leaders in the Banking & Financial Services, Telecom & Media and Healthcare sectors. Its clients include six "Fortune Global 500" banks, two "Fortune Global 500" telecommunications companies and three "Fortune 100" healthcare companies. Firstsource has a global delivery model with operations in India, US, UK, Argentina and Philippines. (www.firstsource.com)