Software company issues first Indian CB for 2008
The $125 million deal for Geodesic Information Systems is offered "club-style" to a small number of investors as a way of overcoming aggressive pricing.
Indian software provider Geodesic Information Systems became the first Indian company to sell convertible bonds this year when it completed a $125 million issue late last Thursday. The money will be mainly used for overseas acquisitions and investments in joint ventures.
The company has a history of acquisitions since its incorporation in 1999 with three deals completed in 2005 alone.
The pricing was aggressive with a 35% conversion premium and a reset that kicks in later than usual, and given...
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