Adani Ports starts $130-m buyback of debt securities - Economic Times

Mumbai: Adani Ports and Special Economic Zone (APSEZ) on Monday said that it has commenced the process of buying back some of its bonds maturing in 2024 as part of the programme to repay debt obligations ahead of scheduled deadlines.

The Adani Group company said in an exchange filing that it has commenced a tender offer to purchase up to $130 million worth of outstanding 3.375% senior notes due 2024. The transaction will be funded from cash reserves.

After the execution of this offer, the company expects around $520 million of notes to be outstanding, which it intends to buy back in tranches of $130 million in the coming four quarters. The future buybacks may be accelerated or deferred based on its liquidity position and market conditions, the company further said.

"The purpose of the tender offer is to partly prepay the company's near-term debt maturities and to convey the comfortable liquidity position of the company," read the exchange communication.

The tender offer will expire on May 22. The company is offering $970 per $1,000 principal amount of notes tendered by May 8 and $955 for notes tendered after that date.

The stock of APSEZ gained 1.38% on Monday to close at ₹670.95 on the BSE. The benchmark Sensex gained 0.67%.

ET was the first to report on Monday that the company will be buying back $650 million worth of senior notes to improve investor sentiment. Senior notes are a type of bonds that take precedence over other types of debt instruments in the event of a company being liquidated due to bankruptcy. Due to this, they attract a relatively lower rate of interest.It is estimated that of the total debt of the Adani Group, foreign currency bonds constitute the highest exposure at 39%, followed by term loans from foreign and Indian banks.

Yields on Adani Group's overseas bonds lately moderated after having spiked in the immediate aftermath of allegations of 'fraud', 'misgovernance' and stock price 'manipulation' by US short-seller Hindenburg Research. The Adani Group has steadfastly denied these allegations.

Yields also retreated after the group began paying off some of its outstanding debt ahead of redemptions. The group has so far prepaid almost its entire outstanding promoter loans taken against shares, although the conglomerate's listed stocks have lost more than $100 billion in combined market value since the Hindenburg allegations became public late January.

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Adani Ports starts $130-m buyback of debt securities - Economic Times
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