Sterlite prices five-year CB with 37.5% conversion premium

The share price falls 10.5% during the marketing as investors position themselves to hedge the $500 million convertible, but recovers the majority of the loss the following day.

India's largest non-ferrous metals and mining company Sterlite Industries raised $500 million early on Friday from a convertible bond that featured the highest conversion premium on an Asian CB this year at 37.5%.

The offering, which was led by Deutsche Bank and Morgan Stanley, was structured like an Indian CB with a five-year maturity and no put, but since the bonds are convertible into Sterlite's American depositary shares ADS listed in the US, it was marketed like a US...

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