MC Exclusive: SP group offers to pay Rs 400 cr extra to bond holders

SP Group agrees to sweeten the deal for bondholders

The Shapoorji Pallonji group has agreed to sweeten the deal for bond holders of Goswami Infratech by agreeing to pay Rs 400 crore extra taking the total payout to Rs 1,800 crore. In exchange, the group has sought bond holders’ approval for postponing of the coupon payment on the debt to September 30 from previous repayment date of May 26, according to documents reviewed by Moneycontrol.

Shapoorji Pallonji group had raised a debt of Rs 14,300 crore in last June for its group entity Goswami Infratech through rupee-denominated zero-coupon non-convertible debentures (NCDs). Investors who subscribed to these bonds include Cerberus Capital, Varde Partners, Canyon Capital, Davidson Kempner, as well as existing lenders Deutsche Bank, Edelweiss Special Opportunities Fund and Ares SSG.

These NCDs came with a special clause known as Most Favoured Nation (MFN) which in the current context means post May 26 if any group companies of Shapoorji Pallonji raised debt from the market at a higher interest rate compared to what was offered to lenders of Goswami Infratech, then even the lenders of Goswami were eligible to get the same higher interest rate. The bonds of Goswami Infratech were offered at redemption premium of 18.75%.

However, currently the Shapoorji Pallonji group is also in the process of raising funds to repay the debt raised against shares of Tata Sons held by Sterling Investments Corporation Private Limited (SIPL), documents showed. The company also added that the debt raised from new lenders of Sterling will not be sufficient for the company to completely repay the existing debts of Sterling.

The Group has already started paying 200 basis points higher interest to Goswami Infratech bondholders after the company failed to sell Gopalpur port before the end of calendar 2023. This clause was triggered as on January 1 this year.

On March 26, Shapoorji Pallonji Group and Adani Ports and Special Economic Zone (APSEZ) signed a deal wherein APSEZ will purchase the 56% stake of the Shapoorji Pallonji Group. Additionally, APSEZ will also buy 39% stake of Orissa Stevedores in Gopalpur Port.

Another such covenant in the bondholder agreement that could be triggered in the near future pertains to listing of its affiliate company Afcons Infrastructure, according to various media reports. The group is expected to list Afcons and use the proceeds towards part payment of debt by June end failing which the interest rate payable to bond holders will increase by another 200 basis points. Afcons has already filed a draft offer document for public listing with the market regulator Sebi.