Zee’s nod for $239 mn in FCCBs to investors
The bonds will be maturing in 10 years and were allotted on a private placement basis to Resonance Opportunities Fund, St John’s Wood Fund Ltd and Ebisu Global Opportunities Fund
New Delhi: Zee Entertainment on Tuesday said the Securities Issue and Allotment Committee of the company has approved the allotment of foreign currency convertible bonds (FCCBs) worth $239 million to investors. In a regulatory filing, Zee Entertainment Enterprises Limited said it has considered and approved the allotment of FCCBs of up to $239 million (around Rs 2,000 crore) maturing in 10 years on a private placement basis to Resonance Opportunities Fund, St John’s Wood Fund Ltd and Ebisu Global Opportunities Fund.
On July 16, the board of Zee Entertainment Enterprise Ltd (ZEEL) approved the raising of funds through FCCBs with a coupon rate of 5 per cent of up to $239 million from investors - Resonance Opportunities Fund, St. John’s Wood Fund Ltd and Ebisu Global Opportunities Fund. These FCCBs will not be listed on any of the stock exchanges, it had said.
However, investors who choose to convert their bonds into shares will pay Rs 160.20 per share. “In case of conversion of all FCCBs, the proposed number of equity shares on a fully diluted basis shall be 124,670,576 of Re. 1 each of the company at the conversion price of Rs 160.20 per equity share,” it said.