MUMBAI: Prime Focus Ltd has announced the launch of up to $ 55 million unsubordinated unsecured foreign currency convertible bonds (FCCBs) due 2012. This money raising activity had been approved by the shareholders on 30 August.
Speaking to Businessofcinema.com from Los Angeles, Prime Focus managing director Namit Malhotra says, “Out of the total amount, 80 per cent will be delegated for the US acquistions and 20 per cent will be utilized for expansion in India.”
Prime Focus Ltd recently acquired two US based firms namely Post Logic Studios and Frantic Films VFX for $ 43 million.
In September Prime Focus also took over UTV’s post production facility, which was valued at $ 3 – 4 million. This was the first Indian acquistion made by the company.
The Bonds will be convertible into ordinary shares of the company, quoted in Indian Rupees and listed on the Bombay Stock Exchange and the National Stock Exchange.
The Bonds will be issued at 100 per cent and will be redeemed at 140.40 to 143.83 per cent. The Bonds will not be callable by the company for the first three years.
Thereafter, the company has the right to redeem all the outstanding Bonds, subject to applicable law, at their early redemption price if the closing price of the shares for 20 out of 30 consecutive trading days is greater than 130 per cent of the early redemption amount divided by the applicable conversion ratio.
The Bonds are expected to price today and closing is expected on or about 15 December, 2007. The Bonds will be sold under the Reg S Application has been made for the Bonds to be admitted and to be listed on the Singapore Stock Exchange.
KBC Financial Products UK Ltd and Kotak Mahindra (UK) Ltd are Joint Lead Managers for the offering.