R Com Completes US$ 500 Million (Rs. 2,225 Crore) Zero Coupon FCCB Offering

  • FCCBs have a conversion price of Rs. 480.68 per share, representing premium of 50% to the share price on 21st March 2006
  • FCCBs carry Yield TO Maturity (YTM) OF 4.65% per annum, extremely competitive pricing OF LIBOR MINUS 50 basis points
  • Reliance Communications Ventures Ltd. (RCoVL) today announced the completion of an international offering of Foreign Currency Convertible Bonds (FCCBs) aggregating US$ 500 million, subject to necessary approvals.

    The FCCBs carry a conversion price of Rs. 480.68 per share, representing a premium of 50% to the closing price of the RCoVL share on 21st March 2006.

    The Bonds have a maturity period of 5 years and 1 day, and are Zero Coupon FCCBs, carrying a Yield to Maturity (YTM) of 4.65 per cent per annum, which reflects extremely competitive pricing of LIBOR minus approximately 50 basis points.

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

    In the event the FCCBs are fully converted into equity, the share capital of the Company would increase by approx. 4.62 crore equity shares of Rs. 5 each, which would represent barely around 2% of fully diluted equity share capital, post the recently announced reorganization of the RCoVL group.

    RCoVL maintains a conservative financial profile, and its net debt: equity ratio, as per consolidated proforma financials, is less than 0.33:1.

    Deutsche Bank was the Sole Bookrunner for the transaction.

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