Zee Entertainment Approves $239 Million FCCBs Allotment

Zee Entertainment Enterprises Limited announced on Tuesday that it has approved the allotment of foreign currency convertible bonds (FCCBs) amounting to USD 239 million.

According to a regulatory filing, the allotment will be made on a private placement basis to Resonance Opportunities Fund, St John’s Wood Fund Ltd, and Ebisu Global Opportunities Fund. The bonds will mature in 10 years.

During a board meeting on July 16, ZEEL had cleared the proposal to raise funds through FCCBs with a 5 percent coupon rate. Investors opting to convert their bonds into shares will do so at Rs 160.20 per share. This move comes after shareholders approved a plan to raise Rs 2,000 crore through various financial instruments earlier in July, making it the first such initiative following the termination of a merger deal with Sony Corporation.

(With inputs from agencies.)