Supply chain solutions provider Gati Ltd today said it has successfully closed the re-issue

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of its Foreign Currency Convertible Bonds (FCCBs) aggregating $ 22.182 million with Goldman Sachs International.

The company has issued zero coupon FCCBs aggregating $ 22,182,000 to Goldman Sachs International with a yield to maturity of 5.76 per cent per annum compounding semi-annually, having a maturity of 5 years, Gati informed the bourses.

The new FCCBs are proposed to be listed on the Singapore Stock Exchange.

The proceeds from the issue would be utilised towards redemption of the outstanding portion of the $ 20 million FCCBs raised in 2006 which are due for redemption in December, Managing Director and CEO of the company Mahendra Kumar Agarwal said in a statement.

"The funds raised from the new FCCBs are being utilised to refinance the existing FCCBs and have helped company to meet its obligation well in time," he said.

ICICI Securities Inc acted as the Lead Manager and Rajani Associates was the Legal Counsel to the FCCB Issue. DBR Credit Capital acted as adviser to the Issue.

The new bonds envisages structured conversion mechanism at a premium over the reference price with the company having Right to Buy Back (Option) of the bonds.

Further, the initial conversion price can be reset upwards on the infusion of equity through strategic partner/ investor, the company added.