Amtek Auto brings "low" premium Indian convertible

Investors award modest conversion premium with hefty demand that drives yield to the tight end of the indicated range.

Anette Jönsson

May 12, 2006

IndiaÆs Amtek Auto has raised $250 million from a convertible bond sale that drew strong demand from investors who welcomed the auto parts manufacturerÆs decision to come to market with a fairly moderate premium.

After a slew of 40-50% premium deals out of India, AmtekÆs fixed premium of 30% stood out as extremely reasonable - and in combination with the companyÆs strong track record and solid earnings outlook this appeared to have turned the CB into an offer that ôeveryoneö felt they needed to buy, says one observer.

When sole bookrunner Citigroup closed the books in the early hours of Thursday morning May 11 135 investors had placed orders leaving the offer about 10 times...

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