Home » Finance » Suzlon seeks 4-month extension to repay $220 mn FCCB’s

Suzlon seeks 4-month extension to repay $220 mn FCCB’s

According to reports, wind turbine maker Suzlon Energy has sought a four-month extension from bond holders for redeeming Foreign Currency Convertible Bonds (FCCBs) worth over USD 220 million that are due next month.

Suzlon today said the extension would allow the company to close various financing measures and drive alignment between all stakeholders on allocation of cash resources.

“We intend to redeem the outstanding October FCCBs at the end of the proposed four-month extension, subject to requisite approvals,” a company spokesperson said in a statement.

Suzlon issued USD 200 million zero coupon convertible bonds and USD 20.8 milllion worth convertible bonds having a coupon rate of 7.5 percent. These are due in October.

According to the statement, the meetings of the bond holders are proposed to be held on October 10.

“We are actively working on various sources of funding; including from the sale of non-critical assets, fresh debt, equity-linked and/or equity fund raising through the domestic and international capital markets, and additional secured leverage at an international subsidiaries-level by optimally re-balancing our debt across various assets,” it said.

The spokesperson said these initiatives would enable the company to optimally allocate resources between business requirements and debt obligations “in a manner that will allow us to obtain relevant approvals from our senior secured lenders”.

Suzlon’s net debt touched Rs 11,165 crore at the end of March 2012.

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