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Liquor major Radico Khaitan said on Monday that it has redeemed the final tranche of its foreign currency convertible bonds (FCCBs) amounting to $44.22 million (over Rs 195 crore) issued by the company in 2006.
The company had raised a total of $50 million through FCCBs on July 26, 2006 to the tune of $40 million and on August 25, 2006 for $10 million.
The final redemption payment for these FCCBs of $44.22 million (inclusive of premium) was made in accordance with the terms and conditions of the issue, Radico Khaitan said in a release.
This final transaction now results in the complete redemptions of the FCCBs issued in 2006. Radico Khaitan has funded the total amount paid of $44.22 million from new external commercial borrowings of seven year maturity. The transaction comprises the outstanding value of $33.91 million and redemption premium of $10.31 million.
The FCCBs had a conversion price of Rs 159.20 a share. They carried a coupon rate of 3.50% a year and had a maturity of five years and one day from the date of issue.
The FCCBs unless previously converted, redeemed, or cancelled, were liable to be redeemed on the maturity date at a premium of 30.39% of the principal amount.
"Until FY10, FCCBs of $16.09 million were repurchased or bought back for cash and subsequently cancelled," it said.
The overall outgo from the company for the redemption of the $50 million FCCB issue is $60.3 million of which $10.3 million is the premium paid, the company said.
The company said now it is not required to allot any equity shares arising out of a potential conversion of FCCBs.
Mr. Dilip Banthiya, Chief Financial Officer of Radico Khaitan said: “Radico Khaitan continues to focus on generating strong cash flow from operations through operational efficiency and premium product quality. The FCCB redemption reinforces the company’s ongoing initiatives to further optimise and strengthen its capital structure. Going forward the company expects its cash flows to be strong enough to meet its growth plans and financial obligations.”
Shares of Radico Khaitan today closed at Rs 130.55 apiece on the Bombay Stock Exchange, down 1.17 per cent from its previous close.
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