Educomp gets funds to pays off FCCBs; shares up 3%

ducomp Solutions today said it has paid off its foreign currency convertible bonds worth $110.75 million, including a redemption premium of $32.25 million, after it received $155 million from four investors, including the promoter group.

FP Staff July 27, 2012 13:08:17 IST
Educomp gets funds to pays off FCCBs; shares up 3%

Educomp Solutions today said it has paid off its foreign currency convertible bonds worth $110.75 million, including a redemption premium of $32.25 million, after it received $155 million from four investors, including the promoter group.

The International Finance Corporation (IFC), French development finance institution Proparco and private investment firm Mount Kellet are the other investors, a press release from Educomp said.

Educomp gets funds to pays off FCCBs shares up 3

AFP

The IFC has invested $55 million, Proparco $45 million Mount Kellet $30 million and the promoter group $25 million. The funding is through a combination of equity and debt.

Mount Kellet will also get a board representation as part of the deal, the company said.

Shares of the company were up nearly 3 percent at Rs 159.

"The long-term nature of the debt improves the asset-liability profile of Educomp's balance sheet and will help Educomp to realise significant value from its investment in its core businesses such as K12," the release said.

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