Coffee Day Resorts, the primary holding company of the Coffee Day Group which spans coffee retail, wealth management, logistics, furniture and hospitality, has seen its debt treble to Rs 635 crore by the end of FY13 compared to the Rs 201 crore by the end of FY12. However, the gearing is pretty much under control with the net worth of Coffee Day Resorts at Rs 1,158 crore.
The holding company, which raised a record $200 million during early 2010, has said that it plans to raise an additional Rs 100 crore through the NCD route with tenor upto 36 months.
It is understood that the company is in various stages of also raising an additional $100 million through the private equity route to part settle the debt.
V G Siddhartha, the chairman & promoter of the Coffee Day Group, had in last year relied heavily on debt to raise his stake in MindTree Technologies, the company which he helped incubate more than a decade ago. In addition to this, he has relied on debt as well to buyback some of the investors including Sequoia Capital who were investors in the flagship Cafe Coffee Day.
It is understood that the promoters of Coffee Day Group have had discussions with select private equity funds and have said that post the fresh infusion, the company will most probably be looking at a public offer to provide an exit to the clutch of investors, including Standard Chartered Private Equity, New Silk Route and KKR.
For the fresh debt raise, Coffee Day Resorts proposes to issue secured redeemable NCD of Rs 100 crore and it is being secured by way of security coverôcollateral of 2.25x pledge of equity shares of MindTree, Sical Logistics and ABCTL which is a combination of listed and unlisted shares and by personal guarantee of the promoter.
