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RCom Launches Tender And Exchange Offer For Bond Holders

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Reliance Communications Ltd. has launched a tender and exchange offer for its $300 million senior, secured bonds due 2020 in view of the proposed debt restructuring planned in the company.

Under the scheme, RCom has offered to buyback the bonds at a discount for cash, the Anil Ambani-owned company said in a notification to the stock exchanges. Bondholders also have the option of exchanging any and all of their existing bonds at a discount for a $45 million zero coupon notes due in 2023 to be issued by Global Cloud Xchange Limited, it added. GCX is a wholly‐owned subsidiary of RCOM.

The notification said the offer is in conjunction with a meeting of holders of
the existing notes which has been convened in London on Aug. 10.

" The purpose of the meeting is to solicit the approval of the holders to certain arrangements, proposals, waivers and modifications under the trust deed for the existing notes." - Reliance Communications Statement

The tender and exchange Offer will expire at 9:00 a.m. (London time) on August 22, 2018, RCom said, adding that the settlement date for the offer is expected to be on or about August 27, 2018.

Last week, the Supreme Court approved the sale of RCOM's tower assets to Reliance Jio, a deal which was valued at Rs 25,000 crore, paving the way for the company's restructuring. The apex court okayed the deal after the telecom company agreed to pay Rs 550 crore due to telecom equipment maker Ericsson.

Also Read: RCom’s Lenders Not In Favour Of Using Jio Deal Proceeds To Pay Ericsson

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