Suzlon gives lenders shares at premium for debt recast

The first phase of the allotment for 30.24 crore shares at an issuance price of Rs 18.51 per share,to CDR lenders was completed on Tuesday,Suzlon said.

At this price,lenders paid up Rs 560 crore while the market price is only Rs 433 crore based on the closing price of Rs 14.32 on Tuesday. The new shares issued will be subject to a lock-in period of one year from the date of allotment, Suzlon said.

The package covers a 10 year back-ended repayment plan,reduction in interest rates by approximately three per cent,a two year moratorium on principal and term-debt interest payments,enhancement of working capital facilities in addition to equity for lenders.

Suzlon said the CDR package has been fully implemented with the signing of the Master Restructuring Agreement MRA,and the preferential allotment of equity shares to its lenders. The debt recast was formally approved in January this year by the companys domestic lenders a consortium of 19 banks.