Mumbai-based visual entertainment services company Prime Focus Ltd is raising $35 million (Rs 189 crore) from Standard Chartered Bank Group through non-convertible debentures (NCDs).
The deal comes soon after Standard Chartered Private Equity decided last month to invest $35 million into the company through a preferential allotment.
The proposed NCDs are subject to various terms and conditions, including execution of definitive documents and all requisite approvals and consents, and will be listed on the wholesale debt market segment of the Bombay Stock market.
Shares of Prime Focus closed at Rs 47.9 a unit on the BSE on Thursday, down 1.14 per cent in a Mumbai market up 0.3 per cent. The company counts Rakesh Jhunjhunwala and Ronnie Screwvala’s family office as its shareholders.
“We understand that there was general concern regarding the redemption of the FCCBs, which we have now addressed for all practical purposes. I am pleased to announce our ability in this environment to keep up our commitments to the institutions and the shareholders who have supported us. The closing of this financing strengthens the ability of the Prime Focus Group to continue on the path of growing our businesses and break new ground, internationally and domestically,” said Nishant Fadia, CFO of Prime Focus.
The company has $79 million of foreign currency convertible bonds (FCCBs) coming up for redemption in December 2012.
Prime Focus provides creative and technical services to the film, broadcasting and advertising markets. Its services include 2D-to-3D conversion, video and audio post-production and digital distribution, among others. The company employs 3,500 people and operates state-of-the-art facilities across North America, the UK and India.