Educomp Solutions’ board has approved a financing package of $155 million, which will be partly used to pay off its foreign currency convertible borrowings (FCCBs). Of the total $155 million raised, $111 million will be used for existing FCCB redemption of $78.5 million and balance as redemption premium, while the remaining $44 million will be used for capital expenditure and strengthening company's balance sheet.
The approved financial package includes $70 million under external commercial borrowings from IFC a member of World Bank Group and French development finance institution Societe De Promotion Et De Participation Pour La Cooperation Economique, under an 8.5 year facility.
It will also get $10 million via FCCB from IFC, convertible into equity at a 40% premium to floor price and up to $50 million by preferential allotment of shares to IFC, Proparco and Mount Kellett. The preferential allotment will be at Rs 149.16 a share, 10% premium to the floor price.
Educomp will also issue $15 million worth of equity and $40 million in warrants to its promoter group on a preferential basis. This will be at Rs 193.74 a share, a premium of around 44% to the share closing price on June 18.
