Suzlon recasts $1.8 billion debt
23 April 2013
Suzlon group, the world's fifth-largest wind turbine maker, today announced the full implementation of a Rs9,500 crore ($1.8 billion) corporate debt restructuring package with the signing of a master restructuring agreement and preferential allotment of equity shares to its lenders.
The CDR, one of the biggest by an Indian corporate, approved by the company's domestic lenders - a consortium of 19 banks - covers a 10-year door-to-door back-end repayment plan, with a three per cent reduction in interest rate and a two-year moratorium on repayment of principal and interest,
The CDR package also provides for enhanced working capital facilities and equity allotment to lenders.
The completion of the corporate debt restructuring (CDR) paves the way for Suzlon to normalise "business operations" and improve overall performance.
Suzlon said the CDR package has been fully implemented with the signing of the Master Restructuring Agreement (MRA), and the preferential allotment of equity shares to its lenders.
As part of the debt recast, Suzlon's promoters have infused Rs125 crore capital.
The first phase of the allotment for 30.24 crore shares at an issuance price of Rs18.51 per piece to the lenders was completed today. The new shares issued would be subject to a lock-in period of one year from the date of allotment, Suzlon said in a release.
"The focus is now 100 per cent on normalising business operations, driving results from project transformation, focusing on the execution of our enviable $7 billion order book, and delivering a healthy performance in FY 2013-14," said Kirti Vagadia, Suzlon Group's head of finance.
In October 2012, Suzlon had announced plans to restructure its debt under CDR mechanism.
The company allotted an additional 12 million equity shares on preferential basis to Samimeru Windfarms Private Ltd against of Rs22 crore contributed as part of promoter contribution under the CDR package, the statement said.
"The total new allocation takes the share capital base of the company to 209 crore shares, up from 178 crore shares," it added.