May 3, 2014
Suzlon Group: Board approves cashless restructuring of its Foreign Currency Convertible Bonds (FCCBs)
- Issue Size: Approximately USD 485 million (assuming the 0% October 2012 Bonds, 7.5% October 2012 Bonds, 0% July 2014 Bonds and only 50% of the 5% April 2016 Bonds are substituted (including unpaid interest and default interest thereon)) subject to receipt of necessary approvals, including approval of the Reserve Bank of India (the RBI) as part of restructuring of the Existing Bonds.
- Maturity: New restructured bonds to have a maturity period of 5 years and 1 day from the date of issue. To mature in financial year 2019-20.
- Conversion Price: Rs. 15.46, being 10% over the Regulatory Floor Price.
- Yield: Step up cash coupon rates, 0% redemption premium on maturity, with a yield of approximately 5%.
Pune 3rd May: Suzlon Group, the worlds fifth largest* wind turbine maker, today announced that its
Board of Directors has, by circular resolution, approved a cashless restructuring proposal in respect of
the Existing Bonds.
The company and an ad-hoc committee of the bondholders have concluded negotiations and have
agreed on the proposed restructuring terms. The ad-hoc committee of bondholders comprises of select
bondholders with significant holdings across each of the Existing Bonds.
The restructuring proposal, including the terms of the new restructured bonds, are subject to the
approval of the RBI, the CDR Empowered Group and the requisite majority of the holders of the Existing
Bonds in each series. In this regard, the company will issue separate notices, each dated on or about 6
th May 2014, to convene meetings of the holders of each series of the Existing Bonds to consider, and if
thought fit, to approve, the restructuring proposal.
Further, the Company has entered into, a standstill agreement with the bondholders ad-hoc committee
(the Standstill Agreement) to facilitate the proposed restructuring of the Existing Bonds. The Standstill
Agreement provides for a standstill period extending until 15
th August 2014, subject to the terms of the
Speaking on the occasion the Chairman Mr. Tanti said The Standstill Agreement is a testimony of the
faith and confidence the bond holders have displayed in Suzlon. At Suzlon, I take pride to share that
against the backdrop of a challenging business environment, the company has managed to retain its
prized customers.Speaking on the development, Mr. Kirti Vagadia, Group Head
Corporate Finance Suzlon Group said:I am glad to inform that we have concluded
our discussion with the ad-hoc committee of bondholders.
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. The Suzlon Group remains thankful to the secured lenders and bondholders for their
patience and constructive approach in arriving at a solution.