The Suzlon Group recently announced that it has successfully repaid in cash, Foreign Currency Convertible Bonds (“FCCBs”) worth US$ 28.8 million (mn) in principal amount, along with the applicable 8.7% redemption premium. This was part of the 5% April 2016 FCCB series (ISIN: XS0614325156), which have now been redeemed in full and will cease to exist. The repayment has been made in accordance with the terms and conditions of the FCCBs.
Mr. Kirti Vagadia, Chief Financial Officer, Suzlon Energy, stated: “I am pleased to announce that we have redeemed, in cash, US$ 28.8 mn FCCBs through internal accruals. Further, most of our remaining debt maturity profile is back-ended. This gives us sufficient headroom to meet our operations and growth requirements. Our focused efforts towards debt reduction, liquidity optimization and business ramp-up are bearing tremendous results.”
Earlier, Suzlon had issued a 5 year FCCB series in April 2011 for US$ 175mn; having a 5% coupon and April 2016 as maturity date (“5% April 2016 FCCB series”). In July 2014, pursuant to a cashless reformation offer, bondholders having FCCBs worth US$146.2mn in principal amount of the 5% April 2016 FCCB series preferred to exchange their FCCBs for a new FCCB series maturing in July 2019. The balance of $28.8mn of the 5% April 2016 FCCB series which were due in April 2016 now stand redeemed in full.