Bangalore-based pharma firm Strides Arcolab has redeemed $34-million worth of Foreign Currency Convertible Bonds (FCCBs) on due date. The company had originally raised $40-million FCCBs in 2005 and has bought back $6 million in 2009. The total payout for redeeming the bonds was $46.50 million as the bonds were redeemable at a premium of 136.78%.
Post redemption of these FCCBs, the company now has outstanding FCCBs worth $80 million out of the $100 million raised in 2007. The $80-million FCCB has an initial conversion price of Rs 461.553 per share, and if not converted before June 27, 2012, are redeemable at a premium of 145.058%, said a company statement.
TS Rangan, Group CFO stated, “The company has diligently planned the redemption thereby reiterating its commitment in securing the interest of the investors."
