Adani Group begins USD 130 mn debt buyback, first since Hindenburg report

Adani Ports and Special Economic Zone APSEZ on Monday started the first debt buyback programme since billionaire Gautam Adanis conglomerate was targeted by a US shortseller in JanuaryAPSEZ floated a tender to buy back as much as USD 130 million of its July 2024 bonds and similar amounts in each of the next four quarters it said in an exchange filing as it looks to regain investor confidence by showing that its liquidity position is comfortableShares of Adani group companies pummelled after Hindenburg Research in a January 24 report accused it of accounting fraud and improper use of offshore tax havens for stock manipulationThe group has denied all allegationsAPSEZ said it had started a buyback programme for its 3375 per cent 2024 maturity dollardenominated bondsAlso Read Gautam Adani meets NCP chief Sharad Pawar in MumbaiThe purpose of the tender offer is to partly prepay the companys nearterm debt maturities and to convey the comfortable liquidity position it said in a statementThe company has engaged 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 to serve as dealer managers for the offerAPSEZ today announced that it has commenced a tender offer to purchase for cash up to USD 130 million in aggregate principal amount of the outstanding 3375 per cent Senior Notes due 2024 the statement saidAfter the successful completion of this Tender Offer the company expects USD 520 million Notes to remain outstandingPost this tender offer the company intends to purchase for cash approximately USD 130 million of the Outstanding Notes in each of the next four quartersThe company may choose to either accelerate or defer this plan subject to its own liquidity position and the market conditions and further subject to the terms including the pricing to be separately announced for each of such tranches it saidThe company intends to fund the Notes accepted for purchase in the Tender Offer from its cash reservesThe tender offer ends on May 22 2023The total consideration for each USD 1000 principal amount of Notes purchased pursuant to the Tender Offer will be USD 970 per USD 1000 principal amount of Notes payable only in respect of Notes validly tendered and not validly withdrawn at or prior to 500 pm New York City time on May 8 2023 that the company accepts for purchase pursuant to the Tender Offeror USD 955 per USD 1000 principal amount of Notes payable in respect of Notes validly tender after the Early Tender Date but at or before the Expiration Time that the company accepts for purchase pursuant to the Tender Offer in each case subject to the Maximum Acceptance Amount and Proration it saidThe maximum acceptance amount is up to USD 130 millionIn addition the company will pay accrued interest in respect of any Notes purchased in the tender offer from and including the last interest payment dateThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever