Transactions > Restructuring > Suzlon Energy – reorganisation and refinancing of Foreign Currency Convertible Bonds of US $ 577 mn

Restructuring

Suzlon Energy – reorganisation and refinancing of Foreign Currency Convertible Bonds of US $ 577 mn

Client Profile:

  • Suzlon Energy Limited (“Suzlon”) is a leading global supplier of wind turbines generators (“WTG”) that operates in 33 countries across 6 continents, employing a workforce of over 13,000 people and delivering end-to-end wind power solutions, from assembly to installation and commissioning

Transaction Snapshot:

The company was unable to achieve its operating plan and was forced to restructure its capital structure, including over USD 2.3 bn in bank debt and USD 577 mn in Foreign Currency Convertible Bonds (“FCCBs”) spread across four series

Avista’s Role :

  • In December 2012, an Ad Hoc Committee of Unsecured Bondholders across all series retained Avista as their financial advisor in connection with the restructuring of Suzlon’s FCCBs. Avista engaged with the Company, the domestic banks, the CDR Empowered Group and the FCCB Holders to agree on the following terms:
    • FCCB Holders shall be entitled to a springing second lien on all domestic assets of the Company and its Indian subsidiaries subject to the Company achieving certain security conditions
    • So long as the restructured Bonds remain outstanding, there were certain restrictions on the Company from creating any encumbrance or security interest on its assets
    • Proceeds of any future equity or equity-linked issuance by the Company will be used to repurchase a portion of the Bonds subject to necessary statutory approvals
  • In May 2014, after a year of contentious negotiations, the Company’s board of directors approved a cashless restructuring proposal in respect of the existing FCCBs and entered into a standstill and support agreement with the majority of holders of the FCCBs
Explore the possibilities Contact Us