Radico Khaitan completes FCCB’s redemption worth $50 million

BANGALORE: Liquor marketer Radico Khaitan redeemed Foreign Currency Convertible Bonds (FCCBs) worth $50 million, it said in a filing with the Bombay Stock Exchange. The company said it has no FCCBs outstanding.

It has refinanced this through external commercial borrowing of seven year maturity.

The New Delhi-based maker of Magic Moments vodka and 8PM whisky had raised $40 million through an issue of FCCB on July 26, 2006 and a further $10 million in August of the same year by exercising the green shoe option. The FCCBs had a conversion price of Rs. 159.20 per share, carrying a coupon rate of 3.5% per annum with a maturity of five years
and one day from the date of issue.

It carried a premium of 30.3961% of the principal amount unless cancelled, converted or redeemed before the maturity date.

The company had repurchased FCCBs of $16.09 million until financial year 2009-10. In the final transaction, it paid back a total amount of $44.22 million including premium.

“Radico Khaitan continues to focus on generating strong cash flow from operations through operational efficiency and product premiumization. This FCCB redemption reinforces the company’s ongoing initiatives to further optimize and strengthen its capital structure,” Dilip Banthiya, CFO of Radico Khaitan said, in a statement. “Going forward the company expects its cash flows to be strong enough to meet its growth plans and financial obligations,” he added.