Assured of raising $50 mn via FCCB issue: Tulip Telecom

Enterprise data services provider Tulip Telecom today said it has received firm commitments of USD 50 million towards subscription of its Foreign Currency Convertible Bonds (FCCB) issue.

The proceeds from the FCCBs, which are proposed to be listed on the Singapore Stock Exchange, will be utilised towards redemption of the outstanding amount of USD 144.69 million (including premium and applicable taxes) foreign currency convertible bonds raised in 2007, Tulip said in a statement.

The company has received firm commitments of USD 50 million towards subscription of its FCCB issue, the statement added.

The FCCBs are due for redemption on August 26, 2012.

"The issuance of bonds would be conditional upon company depositing balance amount through bank debt into an escrow account initiated specifically for the purpose of redemption of the FCCB due," it added.

Elara Capital Plc acted as the sole book runner and lead manager to the offering.

"The funds raised from the new FCCBs will be utilised to refinance the existing FCCBs and enable Tulip to meet its obligation well in time," Tulip Telecom Chairman and Managing Director H S Bedi said.

The endeavour going forward is to strengthen the balance sheet by limiting capital expenditure and sweating existing assets to generate cash flows, which will provide new thrust to business, he added.