India's Reliance Communications starts tender offer for 0% convertibles due 2012

New York, April 14 - Reliance Communications Ltd. announced a cash tender offer for its zero-coupon convertible bonds due 2012.

The company is inviting holders to say how many bonds they are willing to sell and at what price.

Reliance will then announce how many bonds it will buy back and the clearing price, which will be paid to all investors whose bonds are accepted.

The company said it has asked the Reserve Bank of India to allow it to buy back "in excess of" $50 million principal amount of the bonds using cash that it has accrued internally. Settlement of the tender is subject to approval being received by 7:30 a.m. ET on April 24.

Out of the $1 billion of bonds originally issued, $955 million are currently outstanding.

The tender ends at 11:59 a.m. ET on April 17. Confirmations must be received from bondholders by 11:59 a.m. ET on April 21. Reliance expects to announce on April 28 how much it will pay and how many convertibles it will buy back.

Settlement is scheduled for April 30.

J.P. Morgan Securities Ltd. is tender agent (+852 2800 8817 or +44 207 779 3166).

Reliance is a telecommunications company based in Navi Mumbai, India.

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