Welspun Corp, the second largest line-pipe company in the world, has completed part buyback of 4.50% foreign currency convertible bonds (FCCBs) due for maturity in 2014. The company repurchased $44.1 million out of $150 million outstanding convertible bonds.
Further, this buyback was funded by new foreign currency loan with an average maturity of 5 years. After accounting for this buyback, convertible bonds worth $105.9 million remain outstanding and due for maturity in October, 2014. Welspun purchased these bonds at a net value of $94,000 per bond, reflecting a 7.5% discount on the accreted value of $101,600 per bond.
Welspun Corp, the flagship company of the $3.5 billion Welspun Group, is one stop service provider offering complete pipe solution with a capability to manufacture line pipes ranging from half inch to 120 inches, along with specialized coating, double jointing and bending.
