Suzlon plans to buy-back or restructure $ 500 million FCCB

Suzlon plans to buy-back or restructure $ 500 million FCCB; gives three options to bondholders; mixed reaction from brokerage houses

Suzlon plans to buy-back or restructure $ 500 million FCCB.

3 Options to bondholders:


1) Issue new bonds in place of old bonds: upto $ 147 million new bonds in lieu of the old bonds worth $ 245 million, conversion price reduces from Rs 360-370 to Rs 75/sh, YTM on new bonds is 20%.2) Buy back of existing bonds at 45% discount: $ 73 million FCCB for $ 40 million (limited to only 15% of total bonds).

3) Retain the same bonds with change in terms and conditions: to pay upto $ 15 million as incentive fee in respect of existing bonds having a face value of $ 150 million.