Public RelationsSuzlon repays $780 million of acquisition loan
Wind Turbine maker Suzlon Energy repaid $780 million (around Rs 3,700 crore) acquisition loan. This has also made the company achieve a net reduction in overall debt by $350 million (around Rs 1,700 crore).
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The payment was made from proceeds of a partial stake sale in Hansen Transmissions International NV, in addition to a new five-year US dollar denominated loan of $465 million (around Rs 2,190 crore) from State Bank of India.
The company did not elaborate on the loans that have been repaid. But the firm had raised finances to acquire Hansen and Germany’s Repower Systems. “This transaction concludes the first phase of our refinancing exercise. We have achieved an overall improvement in our debt profile, with reduction of nearly 15 per cent. We continue to work towards optimising our capital structure,” said Sumant Sinha, COO Suzlon Energy.
The company in is filing to the Bombay Stock Exchange said that the new five-year $456 million loan provides for a two-year moratorium on repayments of principal as well as two-year holiday on debt covenants.
SBI Caps was the sole financial advisor on the Dollar facility, while on the Rupee facility SBI Caps is Global Coordinator and mandated lead arranger and IDBI Bank is the lead arranger.
Rothschild is the acting financial advisor to Suzlon on debt refinancing.