Buckle up folks, the financial world is buzzing! Neo Asset Management is on the prowl and has its eyes set on a massive ₹300 crore chunk of debt from our very own Steel Exchange of India. And guess what? That mountain of debt used to belong to Edelweiss Alternatives. Now, if the grapevine is to be believed, this bold step aims to swap out that pricey old debt for something a bit more wallet-friendly. And of course, who wouldn’t want some extra cash for their day-to-day operations?
Now, let’s talk numbers. The old loan? Oh boy, it had a heart-stopping interest rate of 21.5%! Ouch! But here’s the silver lining – the fresh loan from Neo Asset Management could be lighter on the pocket, maybe even by a cool 200 basis points. In this grand scheme of things, Neo and its partners are gearing up to grab 3,828 debentures, which, if you’re counting, comes to a neat sum of ₹275 crore.
Hold on to your hats because there’s more! Steel Exchange isn’t just sitting back and watching. They’re diving into the action, ready to roll out brand-new Non-Convertible Debentures (NCDs) worth a jaw-dropping ₹100 crore (for our international pals, that’s about USD12 million). And these NCDs? They come with an 18.75% coupon rate and promise to sprinkle monthly interest blessings and quarterly doses of the principal back to the investors.
It’s no secret, though, that the once-mighty Steel Exchange has hit a rough patch lately. Blame it on the tough steel cycle, dwindling demand, or the rock-bottom prices of the last four or five years. Heck, even that pesky COVID-19 pandemic threw a wrench in the works. And because of all these bumps on the road, their account has been in the red since way back in December 2016.
Word to the wise: This juicy tidbit of news comes hot from the AI oven, but don’t you worry! A human touch made sure it’s good to serve. Dive into the nitty-gritty in our T&C for more deets.
Hope you enjoyed the rollercoaster, and stay tuned for more!