The company and an ad-hoc committee of bondholders ended negotiations and agreed on the proposed restructuring terms. The ad-hoc committee comprises select bondholders with significant holdings across each of the existing bonds, the world's fifth-largest wind turbine maker said in a statement.
The issue size will be about USD 485 million, assuming the zero per cent October 2012 bonds, 7.5 per cent October 2012 bonds, zero per cent July 2014 bonds and 50 per cent of the 5 per cent April 2016 bonds are substituted.
The restructured bonds will have a maturity of five years and one day from the issue date. They will mature in 2019-20 and the conversion price will be Rs 15.46, the release said.
"The proposed cashless restructuring package for our existing bonds is an optimal solution to our last remaining piece under the comprehensive liability management programme and is value accretive for all our stakeholders," said Kirti Vagadia, Group Head of Corporate Finance at Suzlon.
The proposal, including terms of the new restructured bonds, are subject to approval from the Reserve Bank of India, the CDR Empowered Group and requisite majority of bondholders in each series.
The company will issue notices, dated on or about May 6, to convene meetings of holders of each series of existing bonds to consider and approve the recast proposal.
Suzlon has entered into a standstill agreement with the ad-hoc committee to facilitate the restructuring. The agreement provides for a standstill period extending until August 15, subject to the terms of the accord.
"The standstill agreement is a testimony of the faith and confidence the bondholders have displayed in the company. Against the backdrop of a challenging business environment, the company has managed to retain its prized customers, Chairman Tulsi Tanti said.