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Liquor major Radico Khaitan said 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 ($40 million) and August 25, 2006 ($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 2006 FCCBs. Radico Khaitan has funded the total amount paid of $44.22 million from new external commercial borrowings of seven year maturity, it added.
The transaction comprises the outstanding value of $33.91 million and redemption premium of $10.31 million, the company further said.
With the FCCBs fully redeemed, the company said it is now not required to allot any equity shares arising out of a potential conversion of FCCBs.
Stronger Cash flow
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 product premiumisation. This 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.”
The FCCBs had a conversion price of Rs 159.20 a share. They carried a coupon rate of 3.50 per cent a year and had a maturity of five years and one day from the date of issue, it said.
The FCCBs unless previously converted, redeemed, or cancelled, were liable to be redeemed on the maturity date at a premium of 30.39 per cent of the principal amount, it added.
“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.
Shares of Radico Khaitan on Monday closed at Rs 130.55 on the BSE, down 1.17 per cent from its previous close.
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