Suzlon sets conversion price for new bonds offered as incentive in consent solicitation

By Angela McDaniels

Tacoma, Wash., April 27 - Suzlon Energy Ltd. determined the conversion price for the new convertible bonds it will issue in connection with the consent solicitation for its $300 million in zero-coupon convertible bonds due June 2012 and $200 million in zero-coupon convertible bonds due October 2012.

The conversion price is Rs. 76.6755 per share, which is 125% of the volume-weighted average price of the company's shares for the 10 trading days that ended on April 24.

In addition, the fixed exchange rate for the new convertibles is 49.8112 rupees per dollar, according to a company announcement.

As previously reported, the company began a consent solicitation for the convertibles on April 21.

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.

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

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

Holders of the two series of convertibles will vote at separate meetings on April 29. Holders not voting in person had to submit their voting instructions by April 27, the consent deadline.

Settlement is expected to occur May 7.

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

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