Zee to issue Foreign Currency Convertible Bonds (FCCBs) to raise $239mn

Zee Entertainment Enterprises has recently announced plans to issue Foreign Currency Convertible Bonds (FCCBs) amounting to $239 million. Here are the key details of the issuance based on the exchange filing:

1. Purpose and Details of the Issue:

• The FCCBs are being issued to raise $239 million in total.
• These bonds will not be listed on any stock exchanges, neither in India nor abroad.
• The proceeds from the issuance will be drawn in tranches.
• The FCCBs are divided into 10 series.

2. Investors:

• The FCCBs will be issued to specific investors: Resonance Opportunities Fund, St. John's Wood Fund, and Ebisu Global Opportunities.
• The terms and conditions of the issuance are mutually agreed upon by Zee Entertainment and the investors.

3. Terms of the FCCBs:

• The FCCBs will carry a 5% annual coupon rate.
• They will be unsecured and unlisted.
• The maturity period for these bonds is set at 10 years.

4. Potential Equity Dilution:

• If all the FCCBs are converted into equity shares, it would lead to approximately 12.46 crore equity shares being issued.
• Each equity share has a face value of Rs 1.
• The conversion price for the FCCBs is Rs 160.2 per share.

5. Issuance Limit:

• The issuance of FCCBs is authorized up to $239,000,000.