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Suzlon in $485M cashless bond restructuring

06 May, 2014

The board of Suzlon Ltd, one of the world’s largest wind turbine makers, has approved a cashless restructuring proposal for a part of its outstanding bonds, involving a fresh issue of foreign currency convertible bonds (FCCB) worth $485 million, as per a stock market disclosure.

The issue will substitute zero per cent October 2012 bonds, 7.5 per cent October 2012 bonds, zero per cent July 2014 bonds and half of the 5 per cent April 2016 bonds.

The fresh FCCB issue will have a maturity period of five years and one day from the date of issue that will be in 2019-20 and the conversion price will be Rs 15.46 a unit. With step-up cash coupon rates, the bonds will carry yield of 5 per cent.

In line with the proposal, Suzlon has got into a standstill agreement with certain holders of the existing bonds to facilitate the restructuring.

“The proposed cashless restructuring package for our existing bonds is an optimal solution to our last remaining piece under the comprehensive liability management programme and is value accretive for all our stakeholders,” said Kirti Vagadia, group head of corporate finance at Suzlon.

Presently, Suzlon has a debt of around Rs 9,000 crore while its FX debt including FCCBs is around $1 billion. The company will have another meeting on July 9.

Suzlon is also looking to divest its non-core assets in FY15 to bring down the debt. The wind turbine maker, which counts amongst its shareholders Citi Venture Capital International, has sold some assets in the recent past as part of its move to cut debt.

Last month, the company sold its recently acquired wind park Big Sky in the US, to EverPower Wind Holdings Inc. 

Suzlon scrip was quoting at Rs 14.23 a share, up 6.3 per cent in mid-day trades on the BSE in a strong Mumbai market on Monday.

(Edited by Joby Puthuparampil Johnson)


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Suzlon in $485M cashless bond restructuring

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