NDTV subsidiary NDTV Networks Plc compeletes pre-IPO fund raising programme

New Delhi Television Ltd (NDTV) has announced that NDTV Networks Plc. a subsidiary of the Company, has completed it's pre-IPO fund raising programme with the receipt of $100m of convertible bonds due 2012. The implied post money valuation of NDTV Networks, after completion of this round is $500m.

Along with $20 m preferred share placement from M/s. Comventures, completed earlier, NDTV Networks Plc has raised a total of $120 m which will substantially cover the financing requirement of the various verticals of Networks Plc. 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.

The Bonds have been placed with an international group of diverse and sophisticated investors which strongly believes in the growth of the Indian media industry and particularly in the role that NDTV Networks Plc. will play in the industry in the future The salient terms of the bond agreement provides for a stepped up coupon structure with a tenure of 5 years and the option to convert into underlying common stock of NDTV Networks Plc at the time of the initial public offering (IPO). If not converted, the Bonds would be redeemed at the end of 5 years with pre-payment possibility (put/call provisions) at the end of 3 years.

The Company has given an undertaking to provide a corporate guarantee at the end of three years to the extent of 40% of the value of the bonds outstanding at the time.

Jefferies International Ltd were sole book runners and lead managers to the above issue. Enam Securities were Strategic Advisers.

Source : Equity Bulls

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