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The fund plans to provide a $150 million mezzanine debt facility at 18-20% and arrange another $300 million from other lenders to finance the acquisition, said a person in the know. "The funding cost could vary by the instrument where the blend-in cost could be 14-15%," he added. ....
The company will use the funds to repay high-cost money raised from Ares SSG-backed Assets Care and Reconstruction Enterprise (ACRE), the people said. Edelweiss Alternatives Assets through its Edelweiss Special Opportunities Fund, along with other funds, will invest ₹1,000 crore while Kotak Special Situation Fund will provide ₹1,500 crore, and Allianz Global Investors ₹700 crore, one of the persons cited above said. The funds will invest in non-convertible debentures (NCD) maturing in December 2028. ....
Kotak Strategic Situations Fund (KSSF) plans to invest around ₹1,600 crore in the active pharmaceutical ingredients (API) business acquired by Nimmagadda Prasad. The fund will support the acquisition through a $200 million funding, provided through a mix of structured debt and equity. Deutsche Bank and DBS have also reportedly financed the acquisition. ....
Companies that manage to raise funds through public listing, share sale to private equity or through the sale of assets prefer to pay up the credit availed from such funds, which are usually at near usurious interest rates, rather than waiting for the debt to mature. ....
The fund was utilised to reduce the company s debt, including prepayment of term debt amounting to ₹210 crore and reduction of working capital debt of ₹100 crore. ....