The bonds will be issued on a private placement basis to Resonance Opportunities Fund, St John’s Wood Fund, and Ebisu Global Opportunities Fund.
The board of directors of Zee Entertainment Enterprises has approved raising up to $239 million by issuing foreign currency convertible bonds (FCCBs) maturing in 10 years. These bonds will be privately placed with Resonance Opportunities Fund, St John’s Wood Fund Ltd, and Ebisu Global Opportunities Fund, according to a letter Zee sent to the exchanges. The terms and conditions will be mutually agreed upon by the company and the investors.
Zee plans to raise $239 million by selling unsecured, unlisted FCCBs with a 5% annual coupon. These bonds will not be traded on public stock exchanges and will pay 5% interest yearly. The company will not provide any assets as security for these bonds, which are issued in a foreign currency. Investors can choose to convert these bonds into Zee shares at a later date. The bonds are being sold directly to investors such as Resonance Opportunities Fund, St John’s Wood Fund, and Ebisu Global Opportunities Fund. Details like the repayment terms will be decided between the company and these investors.
The sale of these bonds begins on Tuesday. Investors who opt to convert their bonds into shares will do so at ₹160.20 per share. This price includes an equity premium of ₹159.20, with the basic share value being ₹1 and the conversion premium being ₹159.20.
Following the collapse of its merger with Sony Pictures Entertainment in February, Zee announced a three-pronged strategy focusing on cost reduction, eliminating business overlaps, and enhancing quality to restore margins.
For the quarter ended March, Zee reported a net profit of ₹13.35 crore, rebounding from a loss of ₹196 crore in the same period the previous year, with total income rising 3% to ₹2,185 crore.
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