Great Offshore to reprice 7.25% Foreign Currency Convertible Bonds 2012 .

Great Offshore Ltd has informed BSE that the Company had issued USD 4,20,00,000, 7.25% unsecured Foreign Currency Convertible Bonds (“FCCBs”) on October 05, 2007 due for maturity on 2012 in accordance with the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme, 1993 (“FCCB Scheme”). The FCCBs are listed on the Singapore Exchange Securities Trading Ltd and are convertible into equity shares at a price of Rs.875/- per share with a fixed dollar rate of exchange on conversion equivalent to Rs.39.82

The Central Government vide press note dated February 15, 2010 (the “Press Note”) permits revision in the conversion price of outstanding FCCBs issued prior to November 27, 2008. The Board of Directors has at its meeting held on June 23, 2010 passed a resolution approving the re-pricing of the above outstanding FCCBs in terms of the Press Note so that base price for conversion of the outstanding FCCBS would now be readjusted such that based on the exchange rate, agreed upon as aforesaid or the present exchange rate in line with the current exchange rate, for each bond of the face value of USD 1,00,000 the bond holder would get ~ 7964 shares of Rs. 10 each. The aforesaid is subject to the minimum floor price as prescribed by SEBI, which is at a price higher than the average of the weekly high and low of the closing prices of the shares quoted on the stock exchanges during the two weeks preceding the date of the aforesaid Meeting of the Board of Directors.

The Company will proceed to seek approval of its Shareholders and the Reserve Bank of India in relation to such repricing and will enter into an appropriate agreement with the FCCB holders in relation to the repricing of the conversion price.


Source : Frontier India