Educomp pays off FCCBs through USD 155m package

Education solutions provider Educomp today said it has paid off all its outstanding overseas debt from a USD 155-million financial package that it received from IFC, private investment firm Mount Kellett and others.

The company also announced a partnership with Mount Kellett wherein a representative from the investment firm will join its board of directors.
    
The board of the company had approved a comprehensive financing package of USD 155 million, which included funds from World Bank arm IFC, French development finance entity Proparco, private investment firm Mount Kellett and the company's promoters.

"Using these funds, Educomp has since paid off its outstanding FCCB's (foreign currency convertible borrowings) in full (including outstanding principal of USD 78.5 million and redemption premium of approx USD 32.25 million) on due date," Educomp said in a filing on the BSE.

As part of the package, Educomp has received USD 70 million under External Commercial Borrowings (ECBs) -- USD 30 million from IFC and USD 40 million from French development finance institution Proparco (Societe De Promotion Et De Participation Pour La Cooperation Economique) -- under an 8.5 year facility.
    
Besides, the company got USD 10 million via FCCB from IFC, convertible into equity shares at a 40% premium to the floor price.

Educomp received about USD 50 million as equity comprising USD 15 million from IFC, USD 5 million from Proparco and USD 30 million from funds managed by Mount Kellett at the price of Rs 149.16 per share, a 10% premium to the floor price.

The company also got USD 25 million from the promoter group comprising USD 15 million of equity and USD 10 million of equity warrants, at a price of Rs 193.74 per share.

"Not only have we tied up the requisite funding requirements for our liabilities but we have gotten world class investors like IFC, Proparco and Mount Kellett as long term partners," Educomp Solutions Chairman and MD Shantanu Prakash said.