Panacea Biotec brings unique Indian CB

Pharma company brings unusual structured CB.
Panacea Biotec, one of IndiaÆs top-three pharmaceutical companies, has sold $100 million worth of highly-structured convertible bonds through Merrill Lynch to raise cash for its future expansion in India and offshore.

The five-year bonds, which were split into two equal-sized tranches, have two unusual features, which together make this a unique deal in the Indian market. Most notably, the conversion price will be fixed only six months from the issue date and there is also a mandatory conversion feature after six months, subject to a 125% hurdle, for Tranche 1 and after 12 months, subject to a 130% hurdle, for Tranche 2.

One observer notes that this deal will have an inverse relationship to the...
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