RCoVL wraps up $500m FCCB

Reliance Communications Ventures Ltd (RCoVL) today announced the completion of the issue of $500 million (approximately Rs 2,225 crore) foreign currency convertible bonds (FCCBs) with conversion price of Rs 480.68 a share, representing a 50 per cent premium over its yesterday's close at Rs 320.45 on the Bombay Stock Exchange (BSE).

The offer, which was completed within a day of the RCoVL board approval, has a maturity period of five years and one day, and attaches zero coupon rate. It carries a YTM (yield-to-maturity) of 4.65 per cent a year, reflecting a price of nearly 50 basis points lower than Libor.

The offer is likely to be listed on the Singapore Stock Exchange. The RCoVL stock today closed at Rs 320.20 on the BSE, 6.32 per cent lower than yesterday's close.

In a media statement released today, RCoVL said the share capital of the company would go up by 4.62 crore equity shares of Rs 5 each, representing nearly 2 per cent of the expanded equity share capital.

The company's share capital would go up to 2.045 billion shares of Rs 5 each at Rs 1,022 crore after the proposed reorganisation of the telecom business of the group.

RCoVL has a net debt-equity ratio, as per consolidated proforma financials, of less than 0.33:1. Deutsche Bank was the sole book runner for the transaction.

The reorganisation of the telecom business proposed merger of Reliance Infocomm with RCoVL. After the reorganisation, RCoVL will emerge the flagship company of the telecom business of the Anil Ambani group having control of the assets and franchises of all operating firms.