Bilt Mops Up $80mn Via GDRs And FCCBs
To repay high cost debt, expand and modernize facilities
Ballarpur Industries Ltd. (Bilt) has mopped up $80mn through a simultaneous offering of global depository receipts (GDR) and foreign currency convertible bonds (FCCB).
While the company raised $35mn through the GDR offering, the FCCB issue, which was privately placed with three multilateral agencies – IFC Washington, FMO, Netherlands and DEG, Germany – fetched $45mn. Each GDR, which is equivalent to five shares, was priced at $8.27 or Rs 75. This is at a 2% discount to recent stock price of Rs 76.7 at the Bombay Stock Exchange. The conversion price for the FCCBs has been fixed at 115% of the GDR price. However, the coupon rate on the bond, which is convertible over five years, has not been disclosed.
The proceeds will be deployed for modernization and expansion, besides repayment of high-cost debt. Bilt, which is the country`s largest paper manufacturer, has a total debt of around Rs 12bn with an average cost of 11%.
