Videocon to hold exchange offer for 6.75% convertibles; meeting set

By Susanna Moon

Chicago, Nov. 9 – Videocon Industries Ltd. said it will hold an exchange offer for its $200 million of 6.75% convertible bonds due Dec. 16, 2015.

A bondholder meeting has been set for Nov. 30.

Holders who participate in the exchange offer will be deemed to vote in favor of the extraordinary resolution proposed at the meeting, according to a company announcement.

The extraordinary resolution would also approve settlement of the bonds that are not accepted in the exchange offer on the settlement date approved at the meeting, by payment of $50,000 in cash for each $100,000 principal amount of existing bonds and the issue of new convertible bonds for the remaining $50,000, the release noted. Accrued interest will be paid in cash.

Approval is required from the Reserve Bank of India.

The company said it plans to issue the terms of the consent solicitation and the exchange offer on Nov. 16.

Aurangabad, India-based Videocon is a conglomerate with businesses in consumer electronics retail, video-display component manufacturing and oil-and-gas production.

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