United Spirits goes the FCCB route; Greenshoe an option

However, none of United Spirits assets, including Whyte & Mackay will be sold to pay off debts. There has been a definite shift in strategy for Whyte & Mackay. "Earlier we used to concentrate on selling bulk liquid and also had a very large whole label business. But we have decided to grow our profitable branded business," said Capoor.

Rumours about selling some of USL's assets or Whyte & Mackay could be used to retire some of Kingfisher Airlines' debts are baseless, he said, adding that they are two independent companies.

Capoor admitted that USL could look at further fundraising once the FCCB issue is closed. Sources indicated that once its FCCB issues closed within the next two-three months, USL could look at the option of high yield bonds to raise funds.

The USD 225 million from the FCCB issue includes a USD 50 million greenshoe option that the company may look at exercising. “If it is over subscribed and if we do get USD 50 million incremental we will exercise the greenshoe option,” he added.

USL had undertaken a treasury stock sale in 2009 to the extent of Rs 1,100 crore. The company also had a QIP in the same year. It looked at a debt restructuring as well. After taking so many fundraising routes, the question now is how many more will USL take before it is comfortable with the amount of leveraging on its books?

Capoor said the company is looking at further fundraising options but, "There is a definite plan over a period of the next three years to start bringing down our debt which I cannot elaborate on right now."