December 18, 2009
Suzlon Repays ~USD 780 million of Acquisition Loans
- Funded from proceeds of Hansen stake sale and new offshore facility
of USD 465 million from the State Bank of India - Gross debt reduction by approximately 15%; USD 350 million
- Significant progress achieved towards consolidation and refinancing of
Rupee loans
Pune: Suzlon Energy Limited - the world's third largest wind turbine group* - announced
the completion of payment of its entire outstanding Acquisition Loan facility of
approximately USD 780 million. The payment was made from the proceeds of a partial
stake sale in Hansen Transmissions International NV, in addition to a new, five-year US
Dollar-denominated loan of USD 465 million from the State Bank of India. The exercise has
also achieved a net reduction in the overall debt by approximately USD 350 million (~INR
1,700 Crs).
Over the past few months, Suzlon has taken various initiatives to de-lever its balance sheet
and solidify a long-term sustainable capital structure.
- The repayment of the Acquisition Loans is an integral part of the overall debt
consolidation and refinancing exercise being undertaken by Suzlon. - The new, five-year USD 465 million loan provides for a two-year moratorium on
repayments of principal as well as a two-year holiday on debt covenants. - In addition, Suzlon has also achieved significant progress in the consolidation and
refinancing of its existing Rupee denominated term loans and working capital loans
through new debt facilities from a syndicate of banks. - Suzlon is highly appreciative of the confidence and support from its existing and new
lenders and is also in discussions with its Foreign Currency Convertible Bondholders
to streamline the terms of these instruments, including removal of financial
covenants, in line with the new debt facilities.
Speaking on the transaction, Mr. Supratim Sarkar, Senior Vice President SBI Caps,
"We strongly believe in Suzlon's long term business prospects and business model. We have
confidence in the company's potential as an Indian leader on the world wind energy stage,
especially as renewable energy solutions are the future in mitigating climate change."
Mr. Sumant Sinha, COO - Suzlon Energy added: "This transaction concludes the first
phase of our refinancing exercise. We are also happy to report that we have achieved an
overall improvement in our debt profile, with a reduction of nearly 15%, or approximately
USD 350 million, since 30th September, 2009. We continue to work towards optimizing our
capital structure."
SBI Caps was the Sole Financial Advisor on the USD facility, while on the Rupee facility SBI
Caps is Global Coordinator and Mandated Lead Arranger and IDBI Bank is the Lead
Arranger.
Rothschild is acting as Financial Advisor to Suzlon on the debt refinancing
