|
| Rolta to buy back bonds worth $150 million |
| BS Reporter / Mumbai Jun 23, 2009, 00:14 IST |
|
Mumbai-based IT solutions and products firm Rolta has made a tender offer to buy back $150 million zero-coupon (the interest rate stated on a bond) convertible bonds.
The bonds will be repurchased in the form of a Dutch auction (where the asking price is initially high but gradually brought down till some participant accepts the deal). The Dutch auction route has been used earlier by firms like Jubilant Organosys, Reliance Communications and Bajaj Hindustan.
Bondholders are being provided with a price band of not less than 78 per cent and not exceeding 85.50 per cent of each nominal amount of $1,000 of bonds. The company, however, has the sole discretion to decide on the amount of bonds to be repurchased by it.
“Those interested have the price band and they can decide at what level they want to sell their bonds. But, again, it will be at the discretion of the company to decide on the cut-off price. Bondholders who might have gone for a higher price cannot sell,” said an analyst familiar with the procedure.
The bonds, due in 2012, will be repurchased for cash. The offer opens on June 22, 2009, and will expire on June 25, 2009. By the end of this month (June 30), the settlement will be cleared. Barclays Bank and Deutsche Bank (Hong Kong branch) are acting as Joint Dealer Managers. Deutsche Bank (London branch) is acting as Tender Agent.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
