Client Profile:

• Jaiprakash Associates Ltd. (or “the Company”) is an industrial conglomerate, engaged in the engineering & construction, cement, power, real estate, infrastructure, hospitality, healthcare and sports businesses in India
• The Company operates several businesses including cement, engineering and construction for infrastructure projects, power, real estate and hotels and has been impacted by macro-economic headwinds affecting these sectors

Transaction Snapshot:

• The Company, in pursuit of its objective of reducing debt which is fully backed by adequate and high quality assets, had successfully concluded the sale of its cement assets to another business conglomerate
• The Company engaged Avista as its Advisor for the restructuring of its foreign currency convertible bonds of approximately US$110 mn

Avista Advisory’s Role:

• Avista held several meetings with the management and promoters of the Company, conducting a comprehensive due diligence and having a dialogue with the bondholders in order to restructure the bonds
• Avista has negotiated a three-tier structure comprising of (i) an upfront payment and (ii) two series of bonds consisting of an Amortizing bond (to be repaid in staggered quarterly instalments) and a Convertible bonds with a reset of the conversion price
• By providing for conversion at a reset price, the Company and the bondholders get the benefit of participating in the equity growth story of the Company as the business operations of the Company improve over a period of time
• In the meeting of the bondholders held on 15 June 2017, the extraordinary resolution granting consent to the exchange offer was approved with an overwhelming majority of 99.4% of the votes