India New Issue-Sun Pharma to issue over five-year bonds, bankers say

By Reuters News

- India's Sun Pharmaceutical Industries SUN.NS plans to raise 100 billion rupees ($1.05 billion), including a greenshoe option of 30 billion rupees, through two tranches of five-year and one-day bonds, three merchant bankers said on Monday.

The issuer plans to raise up to 30 billion rupees through the first tranche, which will have a put option at end of 17 months, and at least 50 billion rupees with a greenshoe of 20 billion rupees through a bullet structure maturity.

It will pay an annual coupon of 8.05% and 8.20% on these papers, and has invited bids from bankers and investors on Thursday.

The company did not reply to a Reuters email seeking comment.

Late last month, Reuters had reported that Sun Pharma, is likely to raise rupee debt to partly refinance a dollar bridge loan availed for its acquisition of New York-listed healthcare company Organon.

Bridge loans are short-term loans taken before acquisitions to provide financing for the deal, and can be replaced with more permanent funding via bonds or loans.



Here is the list of deals reported so far on October 19:

Issuer

Tenure

Coupon (in %)

Issue size (in bln rupees)*

Bidding date

Rating

Sun Pharma

5 year and 1 day

8.05

20+10

October 22

AAA (Crisil, Icra)

Sun Pharma

5 year and 1 day

8.20

50+20

October 22

AAA (Crisil, Icra)


*Size includes base plus greenshoe for some issues




($1 = 94.8125 Indian rupees)

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