New York, February 5, 2021 (GLOBE NEWSWIRE) – Gurugram, India, February 5, 2021 / New York, February 5, 2021 MakeMyTrip Limited (Nasdaq: MMYT) (“MMYT” or the “Company”) today announced the award in An amount of $ 200 million out of a total of 0.00% of the principal convertible bonds due in 2028 (the “Notes” or the “Notes Offering”). The offering of Notes has increased from the previously announced offering totaling $ 175 million of the total face value of the Notes. In connection with the offering of the Notes, the Company has granted initial purchasers of the Notes a 30-day option to purchase up to $ 30 million in total face value of the Notes. The sale of the Notes to the initial buyers is expected to take place on February 9, 2021 subject to customary closing conditions.
The Notes will not earn regular interest and the principal amount of the Notes will not accrue. The Notes will mature on February 15, 2028 unless previously redeemed, repurchased or converted in accordance with their terms and conditions prior to that date. The Company cannot repay the Notes prior to maturity unless certain changes in tax law or related events occur. Holders of the bonds can request the Company to repurchase their bonds on February 15, 2024 and February 15, 2026 as well as in the event of certain fundamental changes in whole or in part at a repurchase price of 100% each, the nominal amount of the bonds to be repurchased plus accrued and unpaid bonds Special Interest, if any, up to the relevant Redemption Date or the Redemption Date for material changes. The Notes may be converted into common shares (“Common Shares”) of the Company at the option of the holders at any time prior to close of business on the second business day immediately prior to the due date. The initial conversion rate of the Notes is 25,8035 shares of common stock for every $ 1,000 face value of the Notes (giving an initial conversion price of approximately $ 38.75 per common share) and is subject to adjustment in accordance with the terms of the Notes.
The Company estimates that net proceeds from this bond offering, after deducting discounts granted by initial buyers and estimated offering costs, will be approximately $ 194.5 million (or approximately $ 223.7 million if first time buyers are exempt from their option to purchase additional additional Making use of bonds) is companies.
The Company intends to use the net proceeds from the Notes offering for working capital and other general corporate purposes.
The bonds and common stock to be delivered upon conversion of the Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities act. They may not be offered or sold in the United States or to any US person, except to persons believed to be qualified institutional buyers, subject to the registration exemption provided by Rule 144A under the Securities Act.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will any sale of the securities be made in any state or jurisdiction in which such offer, solicitation or sale would be unlawful .
Safe Harbor Statement
This press release contains certain statements regarding the company’s future growth prospects and forward-looking statements as defined in the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company’s current expectations, beliefs, estimates and projections about the company and its industry. These forward-looking statements are subject to various risks and uncertainties. In general, these forward-looking statements can be identified by the use of forward-looking terms such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “project”, “seek”, “should” and similar expressions. These statements include quotes from management and MMYT’s strategic and operational plans. Whether the company will complete the note offering is a forward-looking statement, among other things. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. The potential risks and uncertainties include, but are not limited to, a slowdown in economic growth in India and the global economic downturn, general declines or disruptions in the travel industry, the volatility of the trading price of MMYT shares, and MMYT’s dependence on its relationships with travel providers and strategic alliances, the failure to further increase MMYT’s brand awareness in order to attract new business partners and consumers; the failure to assert oneself against new and existing competitors; the failure to successfully manage current growth and potential future growth; the risks that associated with strategic investments or acquisitions, seasonality in the travel industry in India and overseas, lack of successful development of MMYT’s business travel business, damage or failure of MMYT’s infrastructure and technology, loss of service to key executives of MMYT and inflation in India and other countries. These and other factors are further discussed in the “Risk Factors” section of MMYTs 20-F dated August 17, 2020, filed with the US Securities and Exchange Commission. COVID-19 and the resulting volatile regional and global economic conditions as well as additional or unforeseen effects of the COVID-19 pandemic could continue to create or worsen these risk factors, which in turn could have a material adverse effect on our business, financial condition, liquidity, earnings position (including Sales and profitability) and / or share price. In addition, COVID-19 may also affect our operating and financial results in ways that we are not currently aware of or that we do not currently consider material to our business. All information contained in this press release is provided as of the date of this press release and MMYT assumes no obligation to update any forward-looking statements unless required by applicable law.
About MakeMyTrip Limited
We own and operate popular online travel brands such as MakeMyTrip, Goibibo, and redBus. Through our primary websites www.makemytrip.com, www.goibibo.com, www.redbus.in and mobile platforms, travelers can research, plan and book a wide range of travel services and products in India and overseas. Our services and products include airline tickets, hotel and alternative accommodation bookings, vacation planning and packaging, train tickets, bus tickets, rental cars and additional travel requirements such as: B. Facilitating access to third party travel insurance and processing Visa.
We offer our customers access to all major full-service and low-cost domestic airlines operating in India, as well as all major airlines flying to and from India, with a full range of domestic accommodations in India and to a wide range of properties outside India. Indian Railways and all major Indian bus companies.
For further information please contact:
Jonathan Huang
MakeMyTrip Limited
Vice President – Investor Relations
+1 (917) 769-2027
jonathan.huang@go-mmt.com