Prakash Industries to replace bonds worth $35.7 million

Prakash Industries today said it would replace bonds worth USD 35.7 million with a new set of bonds which can be converted into the company's shares at a price of Rs 60 apiece.
"Outstanding bonds amounting to USD 35.7 million have been tendered for exchange... The terms of the existing 5.25 per cent bonds will remain unchanged," Prakash Industries said in a regulatory filing.
The conversion price for the new bonds fixed was at Rs 60 per equity share, it added.
"With reference to the earlier letter... Regarding the exchange offer inviting all bond-holders to offer to exchange any or all of their existing 5.25 per cent bonds for new bonds at the exchange ratio for a consideration consisting of new bonds equal to 50 per cent of the principal amount of the existing 5.25 per cent bonds...

"... In exchange for such existing 5.25 bonds plus a cash consideration equal to remaining 50 per cent of the principal amount of existing 5.25 per cent bonds plus accrued interest," the company said.
The execution of the offer is subject to having obtained all necessary approvals and compliances with all applicable laws in relation to the restructuring plan.
"The company made the requisite application through the authorised dealer to the RBI for the issue of these new bonds," it added.