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RCom announces exchange offer for USD 300 mn bond holders

Press Trust of India  |  New Delhi 

Debt-ridden today announced a 'tender and exchange' offer to all holders of its outstanding USD 300 million bonds due 2020, proposing to buy the notes at a discount in cash.

According to a regulatory filing, the company has offered to all holders of the outstanding USD 300 million senior secured 6.5 per cent notes due 2020 to buy any or all existing notes at a discount in cash.

It has also offered an option to exchange any or all existing notes due 2020 at a discount for USD 45 million zero coupon notes due 2023.

The new notes would be issued by a "wholly-owned subsidiary of RCOM, Global Cloud Xchange Limited", according to the regulatory filing.

"... it has launched an invitation (the "Tender and Exchange Offer") to all holders of its outstanding US$300,000,000 senior secured 6.5 per cent notes due 2020 (the "Existing Notes") to (i) offer for tender any and all of their Existing Notes to be purchased by at a discount in cash or (ii) offer to exchange any and all of their Existing Notes at a discount for US$45,000,000 zero coupon notes due 2023..." the filing said.

said the tender and exchange offer is being launched by in the context of its broader debt restructuring and is in conjunction with a meeting of the holders of the existing notes which the company has convened in on August 10.

"The Tender and Exchange Offer will expire at 9 am (time) on August 22 2018 unless otherwise extended or earlier terminated upon notification by RCOM to all holders.

"The settlement date for the Tender and Exchange Offer is expected to be on or about August 27, 2018," the filing said.

The company early in the day also announced to have reached settlement with to clear all claims by paying Rs 550 crore by September 30, 2018.

The telecom gear firm had alleged that it had not been paid the dues of over Rs 1,500 crore and challenged the Anil Ambani led firm before (NCLAT).

RCom expects to sell assets covering spectrum, fiber, telecom towers, MCNs and certain real estate assets, for an aggregate value of approximately Rs 25,000 crore by end of this month which it will use to clear dues.

RCom has entered into an agreement with Mukesh Ambani-led and asset management firm Brookfield to sell telecom business assets.

Shares of surged nearly 5 per cent today after the approved the settlement between RCom and over a payment dispute.

The company's stock moved up by 4.65 per cent to settle at Rs 16.42 on the During the day, it soared 7.32 per cent to Rs 16.84.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 06 2018. 22:40 IST
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