On June 22, 2009, Rolta India Limited, launched its tender for repurchase of an aggregate principal amount of its outstanding Zero Coupon FCCBs of US$ 150 Million due in 2012, through modified Dutch Auction, for an amount to be determined by the Company at its sole discretion. The tender offer commenced on June 22, 2009 and closed on June 25, 2009.
The Company is pleased to announce that it has accepted all tenders received amounting to US$ 38.31 Million in face value of Bonds having an accreted value US$ 43.67 million (114%). The repurchase of bonds with a face value of US$ 1000 and an accreted value of approx US$ 1140, has been accepted at a Clearing Price of US$ 855 representing 25% discount on the accreted value.
The Bonds have been repurchased at gross repurchase value of US$ 32.75 million (85.5%) resulting in a gain of US$ 10.92 million (Rs. 53.50 Crores) which will be appropriated into P&L and Reserves and the same will be reflected in the financial statements for the year 2008-09 ending June 30, 2009. The repurchase of bonds was funded out of internal accruals & External Commercial Borrowings (ECBs) raised by the Company.
The Settlement Date is expected to be June 30, 2009, when the Gross Repurchase Amount, less the brokerage commission, will be paid in respect of each principal amount of US$1,000 of Bonds accepted for purchase. The aggregate principal amount of Bonds remaining outstanding following completion of the Tender Offer will be US$ 111.69 million.
Barclays Bank PLC and Deutsche Bank AG, Hong Kong Branch acted as Joint Dealer Managers and Deutsche Bank AG, London Branch, acted as Tender Agent for this deal.
