Pharmaceutical company Strides Arcolab announced repayment of its foreign currency convertible bonds, sticking to its earlier announced plan, thereby lowering its debt to equity ratio to more manageable levels. The company had sold its stake in Australian company Ascent Pharmahealth, which ran its generic pharmaceutical business in Australia and South East Asia, to Watson Pharmaceuticals. Strides had earned Rs 1,200 crore from this transaction, after paying tax.
Reliance Mediaworks, an entertainment and media company, announced the redemption of about €21 million or Rs 130 crore worth of foreign currency convertible bonds. It said that of the total FCCBs of €84 million issued in 2006, a total of about €63 million were converted into equity shares. The remaining debentures were redeemed on January 25, at a premium of 122%, that is it would have repaid a sum of about Rs 160 crore these debenture holders.
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Pharmaceutical company Wockhardt Ltd is seeking shareholder approval through a postal ballot process to continue to restructure its debt, in according with a corporate debt restructuring package. The company had suffered sizeable derivative-related losses when the global financial crisis hit companies. It also had substantial debt taken for overseas acquisitions. Continue Reading →
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Tata Power has come out with a $250 million Foreign Currency Convertible Bond (FCCB) issue with an option to add $50 million more. The tenure of the bond is 5 years and 1 day and will be subject to fulfillment of certain conditions to the closing of the Issue.
The bonds are convertible at 10% premium over the closing price of the company’s shares on NSE on November 5, 2009 (Rs 1323.75 per share). The yield to maturity on the bond is 3.5% a year on a semi-annual basis and will be listed in Singapore.
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Sesa Goa, an Rs 4,960 crore turnover producer of iron ore and pig iron, has lined up a massive fund raising plan. The company, owned by Anil Agarwal-promoted Vedanta Resources, will seek shareholders approval in an extraordinary general meeting to raise up to Rs 6,000 crore through foreign currency convertible bonds, ADRs/GDRs, qualified institutional placement of equities, non convertible debentures, warrants or any other instrument. Companies take a blanket approval from shareholders giving them the flexibility to raise funds at the right time using the appropriate instrument.
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Wockhardt has announced that the corporate debt restructuring cell (CDR) has approved the corporate debt restructuring package on June 30, 2009. The company has accepted the CDR package which involves restructuring of debt, release of working capital and fresh priority debt pending divestment of non-core businesses.