Videocon Industries issues FCCB worth USD 105 mn

Mumbai, Jul 21: Videocon Industries has issued senior unsecured foreign currency convertible bonds convertible into shares of the company for an amount of USD 105 million with a coupon of 4.50 per cent a year.

Announcing this, the company said the interest on the FCCBs shall be payable semi-annually and the bonds shall mature on July 25, 2011.

The bonds will be listed on Singapore Exchange Trading Securities Limited.

Further, the bonds are convertible from 40 days after the settlement date (July 24, 2006), ie, from September 02, 2006, until 7 days prior to the Maturity Date, subject to certain closed periods at an Initial Conversion Price of Rs 511.18 adjusted downwards on July 13 from the year 2007 to 2011 in the event that the average closing price of the shares for 15 consecutive trading days immediately prior to the Reset Date, converted into US dollars at the then prevailing exchange rate (the Dollar Reset Reference Price), is less than the Conversion Price converted into US Dollars at the fixed exchange rate (Rs 46.318 = USD 1).

The conversion price shall be reset to the dollar reset reference price, converted into rupees at the fixed exchange rate, subject to a price of Rs 410 as adjusted in accordance with the anti dilution provisions.

Unless, previously redeemed, converted or repurchased and cancelled, the Issuer will redeem each Bond at a redemption price of 127.65 pc of its principal amount on the maturity date.

UNI