DQ Entertainment International has managed to raise funds up to $ 50 million (Rs 300 crore) through issue of senior secured convertible bonds to OCP Asia’s (Hong Kong) private credit fund OL Master. Documents have been executed by its holding company DQE Mauritius. The fund can be drawn in two tranches, first tranche of $ 35 million which will be drawn immediately and the second for $15 million that can be drawn at the option of OCP Asia within twelve months.
The infusion will be used for developing more than 20 IPs and co-production projects that are lined up for the next two years, for repaying debts of close to $ 7.21 million (Rs 44.51 crore) and for general working capital purposes.
DQE chairman and CEO Tapaas Chakravarti said, “We are delighted to partner with OCP Asia and are confident that this association will help us to realise our vision for DQE. The validation of our business model by the high acumen OCP team further strengthens our commitment to produce and distribute world class content across territories and grow our audience with high quality IP creation.”
The board of DQE had been exploring funding options for the group’s new projects, most of which relate to children/family orientated animation series for TV and digital distribution. The Board feels that issuing of bonds is the best way to make best use of its IPs.
DQE’s production order book is worth approximately $ 63 million (Rs 382 crore) as revenue. The current projects under development include Robin Hood, Peter Pan season 2, Lassie, Miles from Tomorrow Land and Popples & Seven Dwarfs & Me. The new projects that will be funded include 5 & IT, Yonagunis and Leo Galilei and a recently signed deal with Rai in Italy called Pio the Chick that will commence production soon.
Its distribution and licensing division has concluded 24 deals in the current financial year. Broadcast deals for its IPs such as Jungle Book, Peter Pan, Iron Man and Robin Hood have been signed with Rai Cinema (Italy), DEA (Italy), Viacom18 (India) and Univision (USA and Puerto Rico).
OCP Asia (Hong Kong) co-founding partner Teall Edds said, “We have been impressed with DQE’s impressive pipeline and its capabilities in producing world class content, its ability to work with broadcasters from around the world in bringing ideas to the screen and its 360 degree monetisation approach to generating returns on IP. We look forward to our close partnership with DQE.”
The bonds carry a cash coupon rate of 6.5 per cent per annum payable semi annually from the closing date up to maturity date. The bonds have a maturity period of five years from the closing date. The bonds are issued to OCP Asia and are freely transferable in whole or part to any person.
