Bondholders of India’s GTL Infrastructure Ltd. (GTLI) approved plans to exchange 35 percent of the company’s $320 million of convertible bonds due later this month into equity, according to a person familiar with the matter.
GTL, a Mumbai-based telecommunications tower provider, plans to convert the U.S. dollar-denominated notes into shares at a cost of 10 rupees each, the person said, asking not to be identified because they’re not authorized to speak publicly.
GTL’s stock jumped as much as 11.5 percent to 8.75 rupees today, and traded up 3.8 percent at 8.15 rupees as of 12:08 p.m. in Mumbai. Chairman Manoj Tirodkar declined to comment on the conversion plans and other officials at the company didn’t immediately reply to an e-mail.
Houlihan Lokey, a Los Angeles-based investment banking service provider, advised GTL on the transaction, the person said.
The remaining 65 percent of the bonds can be exchanged for new convertible notes which mature November 2017, the person said. Investors also have the option of exchanging all the debt into equity, the person said.
GTL’s zero-coupon notes mature on Nov. 29 at a premium of $140.41 per security, according to data compiled by Bloomberg. The company has the equivalent of $1.98 billion of bonds and loans maturing by the end of 2020, the data show.
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