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| Strides Arcolab buys back $20 million FCCBs | |
| BS Reporter / Bangalore July 2, 2009, 13:54 IST | |
Strides Arcolab, the Bangalore-based Rs 1,100 crore pharmaceutical firm, has said it has bought back $20.5 million out of the total outstanding of $140 million FCCBs (foreign currency convertible bonds) which it had raised during 2005 and 2007.
The company had raised $40 million during 2005 and subsequently had raised $100 million during 2007 from a clutch of hedge funds. Strides has bought back $2 million, at a discount of 15 per cent, of the $40 million which is due to mature during April 2010 with an yield maturity of 136 per cent.
Of the $100 million, which is due during 2012, Strides has bought back $18.5 million with a deep 60 per cent discount on a yield maturity of 145 per cent.
Global hedge funds, which had lend across the globe are resorting to offering discounts to its borrowers to buy-back these bonds in an effort to keep themselves liquid in the ongoing financial turmoil.
Reserve Bank of India had earlier allowed Indian firms to buy back such instruments till March 31, 2009 and subsequently has extended the window till December 31, 2009.
With these moves, Strides debt is now at $119.5 million and according to the company, it is exploring further options to buy back FCCBs with discounts, the window of which is open till end of 2009.
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