Rolta India buys back FCCBs worth $38 million

Rolta India has announced that it has bought back foreign currency convertible bonds (FCCBs) worth $38.31 million through a tender offer, which was open for subscription between June 22 and June 25.

The company had offered to buy back aggregate principal amount of its outstanding zero coupon FCCBs worth $150 million due in 2012.

It has accepted all tenders and received total $38.31 million in face value of bonds having accreted value of $43.67 million (114%). The repurchase of bonds with a face value of $1000 and an accreted value of around $1140, has been accepted at a clearing price of $855 representing 25% discount on the accreted value, the company said in its filing with the BSE.

The bonds have been repurchased at gross repurchase value of $32.75 million (85.5%) resulting in a gain of $ 10.92 million (Rs 53.50 crore), which will be appropriated into Profit & Loss (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 and external commercial borrowings (ECBs) raised by the company.

The aggregate principal amount of bonds remaining outstanding following completion of the tender offer will be $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 the deal.