Suzlon in advanced talks to raise USD 300m to repay FCCBs

Moneycontrol Bureau

Wind turbine maker Suzlon Energy on Friday said it is in advanced stages to raise up to USD 300 million from new facilities to meet its FCCB (foreign currency convertible bonds) obligations in June. It has also sought up to 45 days more time  for repayment of the bonds. Suzlon's acquisition of Germany's REpower was funded by money raised via FCCBs. Now the first tranche of FCCB redemption is due next month. Suzlon has FCCB's with a total redemption value of about USD 569 million due in June and October. The major issue is that current stock price is at around 70% discount to the conversion price of FCCBs and there have been concerns over its ability to repay debt this year. The stock closed up 0.5% at Rs 20.10 on NSE. The company's CFO Kirti Vagadia tried to address some of these concerns on Friday. "I am very pleased to inform our stakeholders that we are at an advanced stage of raising up to USD 300 million with our senior secured lenders for the refinancing of our June FCCB obligations. In order to ensure there is adequate time for the necessary requisite approvals and administrative documentation, we have asked our bondholders for an extension of maturity of up to 45 days," he said. Suzlon also continues to work on plans to raise capital at its overseas subsidiary level, Vagadia added.