Tata and Hon Hai price CBs

Another busy day for the equity-linked market as two deals are priced.

Hon Hai Precision and Tata Engineering & Locomotive accessed the convertible market yesterday (Wednesday) raising a combined total of $500 million Of the two deals, Tata offered the most rarity value as it is the first proper Indian CB since a $99 million issue for Gujarat Ambuja Cements in January 2001 and the first transaction without credit enhancement since 1997

With Citigroup and Merrill Lynch as lead managers, Tata's deal was opened and closed within two hours, attracting an oversubscription level of 10 times even after orders were capped The issue size was also capped at $100 million, since any amount above this level would require regulatory approval

Raising proceeds of $90 million, with a...

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