Reliance Communications to buy $24.7 million foreign currency convertibles in tender

By Devika Patel

Knoxville, Tenn., April 28 - Reliance Communications Ltd. informed the Bombay Stock Exchange that it has repurchased and will extinguish $24.7 million of its $1 billion issued zero-coupon foreign currency convertible bonds due 2012 at a discount through a tender offer.

The company will pay a price of 85 for the bonds.

Holders will receive $84,000 per $100,000 bond, made up of the clearing price of $85,000 less a 1% brokerage commission.

Following the tender there will be $925.3 million of the convertibles outstanding.

Settlement is scheduled for May 6.

At its previous announcement on April 15, Reliance extended its cash tender offer for its zero-coupon convertible bonds due 2012.

The expiration was pushed back to 11:59 a.m. ET on April 21 from 11:59 a.m. ET on April 17. Confirmations were required by 11:59 a.m. ET on April 23, instead of the same time on April 21.

The deadline for approval from the Reserve Bank of India was changed to 7:30 a.m. ET on April 27 instead of April 24.

Reliance said it was delaying the deadlines because the original offer only allowed a "limited amount of time."

The company announced the offer on April 14 and said it was inviting holders to say how many bonds they are willing to sell and at what price.

Reliance said it would then announce how many bonds it would buy back and the clearing price, to be paid to all investors whose bonds are accepted.

The company said it asked the Reserve Bank of India to allow it to buy back "in excess of" $50 million principal amount of the bonds using cash that it has accrued internally.

Out of the $1 billion of bonds originally issued, $955 million are currently outstanding.

J.P. Morgan Securities Ltd. is tender agent (+852 2800 8817 or +44 207 779 3166).

Reliance is a telecommunications company based in Navi Mumbai, India.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.