Zee Entertainment announced a Foreign Currency Convertible Bonds issue (FCCB) on 16 July to raise $239 million, according to an exchange filing.

The FCCBs will be issued to Resonance Opportunities Fund, St. John’s Wood Fund Ltd., and Ebisu Global Opportunities based on mutually agreed terms.

They will have a 5% annual coupon rate. These bonds will be unsecured, unlisted, and will have a maturity period of 10 years. Proceeds from the FCCBs will be issued in tranches, divided into 10 series.

If every FCCB is converted to equity, 12.46 crore shares will be diluted at a face value of Rs 1 each, with a conversion price of Rs 160.2 per share. The conversion price represents a 3% premium over Zee Entertainment’s closing price on 16 July.

The total fund raised totals Rs 1,997 crore. The company’s board approved raising up to Rs 2,000 crore on 6 June through various methods, with the inclusion of equity shares.

The company stated that this would strengthen its strategic flexibility. The funds will help the company pursue future growth opportunities in the media landscape.

After the failed merger with Sony Pictures in February, the firm is pursuing a new strategy. This strategy focuses on reducing costs and eliminating business overlaps with the goal of enhancing quality and restoring profit margins.

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