The Hindu Business Line : Mercator raises $60 m through FCCB issue

MERCATOR Lines Ltd (MLL) has raised $60 million (around Rs 270 crore) through the placement of foreign currency convertible bonds (FCCBs) with a cash coupon rate of 1.5 per cent per annum and a maturity of five years and one day.

The issue was undertaken on a book-building basis.

The initial conversion price of the FCCB is Rs 149.53, against a face value of Re 1 per share. This represents 40 per cent premium over the volume weighted average price of the date of launch. With a yield to maturity (YTM) of 5.95 per cent, the FCCBs will be listed on the Singapore Stock Exchange.

MLL shall be taking delivery of two Aframaxes - one this month for about 90,000 dwt tanker and one in May for about 1,10,000 dwt tanker, which will take the company's capacity to approximately 1.24 million dwt, said a press release.

MLL has further expansion plans to acquire some vessels as also to float international operations. The company is also contemplating entering into the bulk carrier operations.

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