Zee Media Secures $465.9 Million FCCB Fundraise with Attractive Conversion Price

Zee Media Corporation Ltd. has made a significant fund-raising plan involving Foreign Currency Convertible Bonds (FCCBs) of $465.9 million with an annual coupon rate of 5% and tenor of 10 years. The FCCBs have been priced at a conversion price of ₹13.50 per equity share, which is marginally higher than the fixed floor price of ₹13.04 per share, indicating confidence of investors in the company's growth prospects.

 

The funds will be used to improve Zee Media's balance sheet and finance strategic initiatives in the competitive media space. This is part of the company's overall strategy to pursue multiple routes of fundraising, including equity shares and debentures. The FCCBs give investors the choice of converting bonds into equity, which provides for long-term commitment.

 

This move is a turning point for Zee Media as it attempts to overcome issues such as recent losses and falling stock performance. The fundraising process is likely to bring much-needed cash to shore up operations and drive future growth prospects.

 

Source: Zee Media