Educomp raises $155 m to repay debt
The company also announced a partnership with Mount Kellett wherein a representative from the investment firm will join its board of directors. The announcement saw the company's share price decline 0.49% on the BSE to close at R153.6.
As part of the financial package, Educomp has received $70 million under external commercial borrowings (ECBs) — $30 million from IFC and $40 million from French development finance institution Proparco (Societe De Promotion Et De Participation Pour La Cooperation Economique) — under an 8.5-year facility. "Using these funds, Educomp has since paid off its outstanding FCCBs in full (including outstanding principal of $78.5 million and redemption premium of approximately $32.25 million) on due date," the company said.
“Not only have we tied up the requisite funding requirements for our liabilities, but we have gotten highly reputed world class investors like IFC, Proparco and Mount Kellett as long-term partners. Our equity has come in at a significant premium to the market price underscoring the value that investors see in Educomp's portfolio of leadership businesses in the Education space while the long term, 8+ year debt, strengthens our balance sheet significantly,” Educomp chairman and MD said Shantanu Prakash said.
The company had announced the raising of these funds on June 20 to pay off its existing overseas borrowings which
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