Firstsource launches $275 mn FCCB issue

Firstsource Solutions, a leading pure-play BPO company, has launched and priced a Zero coupon Foreign Currency Convertible Bonds ("FCCB") offering for an amount of $275 million, subject to shareholder approval.

The funds will be utilised towards the repayment of the $275 million debt contracted at LIBOR plus 250 bps for its recent acquisition of MedAssist Holdings.

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. JP Morgan and ICICI Bank acted as the joint book-runners to the transaction.