Himatsingka raises US$40.7M in debt, with option for US$34M more
What's the deal? HimatsingkaDealroom has a profile for this one. Try Dealroom → has raised US$40.7M through Series 1 Listed Non-Convertible Debentures (NCDs) via private placement. The unsecured, rated NCDs carry an 11.50% coupon paid quarterly over a 42-month tenure, and are listed on BSEDealroom has a profile for this one. Try Dealroom →.
Why now? The issuance signals a medium-term debt requirement for the textile maker. A green shoe option lets it raise up to US$34M more, potentially taking the total to US$74.7M.
What's the endgame? Himatsingka manufactures home textiles, apparel fabrics, and garments, with plants in India and Southeast Asia. The fresh funds give it capital for business operations or strategic initiatives.
What could go wrong? The NCDs are unsecured, meaning no collateral backs them. Any delay in interest or principal payment beyond three months triggers a 2% penalty, so the debt will bear watching against the company's leverage.
The signal: The 11.50% coupon offers a read on Himatsingka's current cost of debt in the private placement market. Investors will track how the raise reshapes its debt-to-equity ratio and interest coverage in coming results.
Read more: whalesbook.com
Image credit: Jameschen2009
