Suzlon's creditors say yes to new USD-547m bond

Jul 10, 2014 - Indian wind turbine maker Suzlon Energy Ltd (BOM:532667) yesterday said it has secured its bondholders’ approval to issue USD 546.9 million (EUR 401m) in new bonds to substitute older debt plus unpaid interest.

The issue date is expected to be July 15, 2014, while the new foreign currency convertible bonds will be due on July 16, 2019. The interest rate has been set at 3.25% for the first 18 months and 5.75% for the next three years and a half. The bonds will be convertible into Suzlon stock at a price of INR 15.46 (USD 0.26/EUR 0.19) per share.

As a result of the planned debt issue, Suzlon’s 0% October 2012 bonds, its 7.5% October 2012 and the 0% July 2014 bonds will be terminated. The new bonds will also replace USD 146.2 million of the principal amount of the company’s 5% April 2016 series, while some USD 28.8 million in principal value will remain outstanding.

The restructuring of Suzlon’s existing bonds was earlier greenlighted by the Corporate Debt Restructuring Empowered Group and the Reserve Bank of India, the company noted.

Last month chairman Tulsi Tanti told the Hindu Business Line that Suzlon was on track to install over 1,200 MW of turbines at home in the fiscal year through March 2015. According to data by the Indian Wind Turbine Manufacturers’ Association (IWTMA), in fiscal 2013/14 the company has returned as the top turbine supplier in India with 403 MW of installations.

(INR 100 = USD 1.674/EUR 1.227)

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