MUMBAI: NDTV Networks Plc, a subsidiary of New Delhi Television Ltd (NDTV), has completed its pre-IPO fund raising programme with the receipt of $100 million of convertible bonds due 2012.
The implied post money valuation of NDTV Networks, after completion of this round is $500 million, according to the company.
Along with $20 million preferred share placement from Ms Comventures, completed earlier, NDTV Networks Plc has raised a total of $120 million, which will substantially cover the financing requirement of the various verticals of Networks Plc such as NDTV Imagine Ltd, NDTV Lifestyle Ltd, NDTV Convergence Ltd, NGEN Media Services Pvt Ltd, NDTV Labs Ltd and NDTV Emerging Markets 24×7 BV.
The bonds have been placed with an international group of diverse and sophisticated investors. The salient terms of the bond agreement provides for a stepped up coupon structure with a tenure of five years and the option to convert into underlying common stock of NDTV Networks Plc at the time of the initial public offering (IPO). If not converted, the bonds would be redeemed at the end of five years with pre-payment possibility (put/call provisions) at the end of three years.
The company has given an undertaking to provide a corporate guarantee at the end of three years to the extent of 4o per cent of the value of the bonds outstanding at the time.
