Hotel Leela buys back Euro 12.20 million & US$33 million worth FCCBs

Hotel Leelaventure Ltd has announced that the Company has achieved considerable success in the exercise of Buyback of its Foreign Currency Convertible Bonds. The quantum of FCCBs bought back and cancelled as on March 31, 2009 stood at Euro 12.20 Mn constituting 23.7% of the outstanding Euro 51.40 Million due September 2010.

Similarly, the Company has bought back and cancelled US$ 33 Mn constituting 33% out of its US$ 100 Mn due April 2012. These FCCBs were bought back it a substantial discount to the nominal value of the Bonds, In addition, the Company would also be benefited by the saving in the premium on the redemption of the Bonds which would otherwise have been payable on maturity. The redemption premium payable on maturity on the Euro FCCBs is 25.5% whereas for the US$ Bonds, the redemption premium payable on maturity is 46.61%.

Commenting on this, Mr. Vivek Nair, Vice Chairman and Managing Director said that our FCCB buyback exercise was one amongst the top few successfully completed exercises. This will not only add to our bottomline, but also generate good savings in the redemption premium which would otherwise have been payable on maturity.

The Leela Group has expanded its presence in both the business and leisure segments with its Gurgaon Hotel and Serviced Residences which became operational in January 2009 and the scheduled opening of Udaipur resort on Pichhola Lake in mid April 2009. The other projects under implementation include Chennai and New Delhi at Chanakyapuri.

Apart from this, the Company owns land in Agra, Hyderabad and Pune, which will be taken up in the next phase.

Source : Equity Bulls

Keywords