GTL Infrastructure stock was up 6.78% as the company completed the restructuring of its foreign currency convertible bonds worth $300 million. The zero coupon foreign currency convertible bonds (FCCB) were due November 29, 2012.
The FCCBs have been restructured for a tenure of five years. Bondholders approved the restructuring of the bonds at a meeting in Singapore.
Bondholders approved the restructuring of the outstanding amount of $319.3 million. Of this, 35% will be mandatorily converted into equity at a premium of about 28% over closing price of November 7, 2012. This will increase the share holders funds to around Rs 600 crores, as and when these bonds are converted
“The successful completion of the restructuring of the FCCBs and Rupee debt with the support of the Bondholders/Lenders demonstrates their belief and conviction in the management’s vision to establish GTL Infrastructure as the leading passive telecom infrastructure provider in India,” said Manoj Tirodkar, Chairman, GTL Infrastructure.
The new exchangeable bonds have been restructured into two series. Other than the mandatory conversion, bonds of $207.55 million were created with a conversion price of Rs.10 per share for conversion within 60 days and Rs.12.64 per share afterwards with a yield to maturity of 5.812% per annum.
