The first debt repurchase plan since the billionaire Gautam Adani’s firm was targeted by a US short-seller in January was launched by Adani Ports and Special Economic Zone on April 24.
In an effort to win back investor confidence by demonstrating that its liquidity situation is secure, Adani Ports and Special Economic Zone said in an exchange filing that it will launch a tender to buy back up to USD 130 million of its July 2024 bonds as well as comparable amounts over the course of the next four quarters.
Shares of the Adani group firms plunged after Hindenburg Research accused it of accounting fraud and unlawful stock manipulation using offshore tax havens in a report dated January 24. The organisation has refuted every accusation.
Adani Ports and Special Economic Zone announced that a repurchase scheme for its dollar-denominated bonds with a 3.375 percent 2024 maturity had begun. According to a statement, “the tender offer is intended to convey the company’s comfortable liquidity position and to partially prepay the company’s near-term debt maturities.” To act as dealer managers for the offer, the business has hired Barclays Bank, DBS Bank, Emirates NBD Bank PJSC, First Abu Dhabi Bank, PJSC, MUFG Securities Asia Singapore Branch, SMBC Nikko Securities (Hong Kong), and Standard Chartered Bank.
In a statement, Adani Ports and Special Economic Zone stated that it has started a tender offer to buy the outstanding 3.375 percent senior notes due 2024 for cash up to USD 130 million in aggregate principal amount. The business anticipates that there will still be USD 520 million worth of Notes outstanding once this Tender Offer is completed successfully. next this tender offer, the business plans to buy roughly USD 130 million worth of the Outstanding Notes for cash over the course of the next four quarters.
According to its own liquidity situation, market circumstances, and further parameters, including price, to be separately published for each of these tranches, the business may opt to either accelerate or postpone this strategy, according to the statement. The business plans to use its cash reserves to pay for the Notes approved for purchase in the Tender Offer. On May 22, 2023, the tender offer expires. The total sum that may be accepted is up to USD 130 million. In addition, the business will pay accumulated interest on any Notes bought via the tender offer beginning on the last interest payment date and continuing until the present.
