Eros plans to raise $100 million in equity-linked financing

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MUMBAI: Film entertainment company Eros International is planning to raise $100 million in equity-linked financing to repay amounts outstanding under its revolving credit facility and for general corporate purposes.

The company said it has entered into definitive agreements with an institutional investor in connection with a registered direct offering of $122.5 million aggregate principal amount of its senior convertible notes due 2020 and warrants to purchase 2 million of the Company’s A ordinary shares, for gross proceeds of $100 million, before deducting estimated offering expenses.

The offering is expected to close on or about 6 December subject to satisfaction of customary closing conditions. There can be no assurance that the Offering will be consummated.

The company expects to receive approximately $99 million in net proceeds from the Offering, after deducting estimated fees and expenses.

Eros further stated that it will use approximately $52.7 million of the net proceeds from this offering to repay amounts outstanding under our revolving credit facility while the remaining amount will be used for general corporate purposes.

Unless otherwise indicated in the applicable prospectus supplement, the net proceeds from the sale of the securities will be used to fund new co-productions and acquisitions of Hindi and regional film library content and film-related content, to grow our digital distribution channel, and to maintain and further strengthen our other distribution channels.

Citigroup Global Markets served as capital markets advisor to the company in connection with the offering.


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