Videocon lowers coupon on convertible bonds to 2.8%, amends put date

By Marisa Wong

Morgantown, W.Va., Aug. 4 – Videocon Industries Ltd. said it amended its 4.3% convertible bonds due 2020 after obtaining approval from the Reserve Bank of India.

Effective as of Aug. 3,

• The put option date was changed to Dec. 30;

• The issuer redeemed $22 million of the outstanding bonds, leaving $75.2 million principal amount outstanding;

• The interest rate on the bonds was changed to 2.8% from and including June 30 up to but excluding the maturity date; and

• A commitment fee of $38.1536 per $1,000 principal amount, or an aggregate of $3,708,530, was paid to all bondholders as consideration for their consent to the extraordinary resolution.

As announced last week, bondholders approved the extraordinary resolution presented at the bondholders’ meeting held on July 22. The company had solicited consents from holders of its $97.2 million 4.3% convertible bonds to approve a proposal that would, among other things, amend the bonds’ trust deed to change the put option date to Dec. 30.

Following the meeting, the company announced that some additional amendments were presented at the bondholders’ meeting and that those changes were approved along with the originally proposed amendments.

The changes were subject to approval from the Reserve Bank of India.

DB Trustees (Hong Kong) Ltd. is the trustee for the bonds.

Videocon is a diversified manufacturing company based in Mumbai. Its core products are consumer electronics and home appliances.

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