The Hindu : Business : Sical Logistics raises $75 m

Online edition of India's National Newspaper
Thursday, Apr 20, 2006

Business

Business

Sical Logistics raises $75 m

Special Correspondent

CHENNAI: Sical Logistics Ltd. [formerly South India Corporation (Agencies) Ltd.] has raised $75 million in foreign currency convertible bonds (FCCB).

The bonds are listed on the Singapore Stock Exchange.

The bonds will mature in five years and one day, on April 18, 2011. Each $1,000 bond is convertible into 78.8152 shares of Sical Logistics at a conversion price of Rs. 563.55 each, a premium of 30 per cent over the closing price on the BSE of Rs. 433.50 on March 14, 2006.

The company can exercise a call option for the bonds after April 17, 2007, provided a 30 per cent premium has been achieved over the accreted conversion price as of that date.

To finance new projects

The bonds carry a zero coupon with a yield-to-maturity of 6.32 per cent calculated on a semi-annual basis.

Deutsche Bank was the sole underwriter and book-runner to the offering.

The offering was launched on March 15, 2006. The funds raised thus will be used to finance new projects.

Ashwin Muthiah, Vice-Chairman, said in a release that the successful closure of the FCCB issue was a milestone in the well-planned growth strategy of the company.

"The fast-growing Indian bulk and containerised logistics space is an exciting opportunity; the funds raised from the FCCB issue will help us quickly leverage Sical's current leadership position and customer relationships in integrated multi-modal logistics," the release quoted him as saying.

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