Notice of Early Redemption for Zero Coupon FCCBs

Posted By: Religare
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Mahindra & Mahmahindra Ltd has informed BSE that the Company had, on April 13, 2006, issued 2000 Zero Coupon Foreign Currency Convertible Bonds (due on April 14, 2011) of US$ 1,00,000 each ('FCCBs') aggregating US$ 200 million.

In the year 2008-2009, the Company had repurchased FCCBs aggregating US$ 10.5 million at a discount and the same have been cancelled upon repurchase.

The Bondholders have in the last three months opted for conversion of FCCBs aggregating US$ 48.3 million into Equity Shares / GDRs; each GDR representing One Equity Share of the Company.

The Company has elected to issue a notice of early redemption on the outstanding FCCBs aggregating US$ 141.2 million as of date in terms of the Offer Documents and has directed The Bank of New York; Depositary Trustee and Principal Paying Agent, Conversion Agent and Transfer Agent for FCCBs, to issue to the Bondholders today the notice of 30 days for early redemption.

The Bondholders will have the right to convert the FCCBs on or before October 29, 2010 and the balance outstanding FCCBs after the conversions, if any during this period, will be redeemed on November 08, 2010.

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