GTL Infrastructure has completed the restructuring of foreign currency convertible bonds worth $320 million. The zero coupon Foreign Currency Convertible Bonds (FCCBs) were due on November 29, 2012.
The bonds were restructured for five years and one day tenure. At a meeting held in Singapore today, the bondholders approved the restructuring proposal, the passive telecom infrastructure company said in a statement.
Of the $320 million, 35 per cent would be mandatorily converted into equity at a premium of about 28 per cent over Wednesday’s closing price, the company said in statement.
“The successful completion of the restructuring of the FCCBs and rupee debt with the support of the bondholders and lenders demonstrates their belief and conviction in the management’s vision to establish GTL Infrastructure as the leading passive telecom infrastructure provider in India,” GTL Chairman Manoj Tirodkar said.
The remaining 65 per cent could be converted into equity (optional conversion) at a premium of about 62 per cent over closing price on November 7, 2012. On Wednesday, the company’s share price closed at Rs 7.82 on the BSE.
The yield-to-maturity of these bonds is at 5.81 per cent per annum, compared with the original of 6.90 per cent.
The telecom tower company has received approvals from the regulators — including the Reserve Bank of India and Singapore Stock Exchange — and bondholders for the restructuring, it added.
On Thursday, the company’s share price closed up 6.78 per cent at Rs 8.35 on a weak BSE.