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MUMBAI:
UK-based NDTV Networks Plc, the subsidiary company of NDTV
Ltd, has raised $100 miilion ahead of its initial public offering
(IPO).
This
has been completed through convertible bonds due 2012, setting
the valuation of $500 million. The company earlier announced
another $20 million raised through a preferred share placement
with venture capital firm Comventures.
"NDTV
Networks Plc has raised a total of $120 million which will
substantially cover the financing requirement of the various
verticals such as NDTV Imagine Ltd, NDTV Lifestyle Ltd, NDTV
Convergence Ltd, NGEN Media Services Pvt. Ltd, NDTV Labs Ltd
and NDTV Emerging Markets 24x7 BV," NDTV said.
NDTV
Networks has wholly owned subsidiary companies NDTV Imagine
and NDTV Lifestyle which would launch Hindi general entertainment
and lifestyle channels.
NDTV
has placed the bonds with an international group of diverse
investors. "The salient terms of the bond agreement provides
for a stepped up coupon structure with a tenure of five years
and the option to convert into underlying common stock of
NDTV Networks Plc at the time of the IPO. If not converted,
the bonds would be redeemed at the end of five years with
pre-payment possibility (put/call provisions) at the end of
3 years," the company stated.
NDTV
has given an undertaking to provide a corporate guarantee
at the end of three years to the extent of 40 per cent of
the value of the bonds outstanding at the time.
Jefferies
International Ltd were sole book runners and lead managers
to the above issue while Enam Securities acted as strategic
advisers.
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