Suzlon seeks consents for two series of 0% convertibles in exchange for cash or notes

By Susanna Moon

Chicago, April 21 - Suzlon Energy Ltd. said it began a consent solicitation for its $300 million in zero-coupon convertible bonds due June 2012 and its $200 million in zero-coupon convertible bonds due October 2012.

The consent deadline is April 27.

The company is seeking to amend the financial covenants in the convertibles' trust deeds and to waive any event of default that may have occurred.

In exchange for consents, holders may receive a fee of up to 10% of par. Holders who consent may also choose to tender their notes, in which case they will receive cash or the company's new 7.5% convertible bonds due June 2012 or 7.5% convertible bonds due October 2012.

Holders who wish to receive new convertibles must tender at least $200,000 of old convertibles.

The company will issue $600 principal amount of new convertibles for each $1,000 principal amount of the old convertibles.

The principal amount of new bonds cannot exceed $147 million. There is a cash consideration limit of at least $40 million, which is the minimum amount of cash available for payment to bondholders, and the total consent fee cannot exceed $15 million.

A bondholders meeting will be held on April 29.

Pune, India-based Suzlon Energy is a wind power company that manufactures, designs, develops and sells wind turbine generators.

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