Transactions > Suzlon Energy Limited

Suzlon Energy Limited

FCCB Rescheduling

Financial Advisors

Client Profile

Suzlon Energy Limited is a leading global supplier of wind turbine generators 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.

As a result of the industry downturn, capital markets headwinds and limited liquidity, the Company was unable to achieve its operating plan and was forced to restructure its capital structure, including over US$2.3 billion in bank debt and US$547 million in Foreign Currency Convertible Bonds (“FCCBs”) spread across four series.

Avista and Houlihan Lokey’s Role

In December 2012, Avista and HL was appointed as the exclusive financial advisor to the Ad Hoc Committee of Bondholders across all series.

We prepared the restructuring proposal and arranged negotiation meetings with the Company and domestic banks/ CDR lenders, suggested various deal structures and assisted in negotiation and finalization of commercial terms.

Transaction Snapshot

Avista and HL successfully structured and negotiated a cash-less restructuring of Suzlon Energy’s FCCBs of face value US$485 million (US$547 million including redemption premium) for five years.

The bonds will mature in 2019. The conversion price is set at INR15.46 a share, being 10% over the regulatory floor price.

The new bonds will have a coupon rate that will step up over the five years, and the yield will average out to approximately 5%.

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