Suzlon Energy offers incentive fee for extension of convertibles

By Angela McDaniels

Tacoma, Wash., Oct. 3 - Suzlon Energy Ltd. will pay an incentive fee to holders who consent to the extension of its convertible bonds, according to a company notice filed with the Bombay Stock Exchange.

The payment of the incentive fee, the amount of which was not disclosed, is subject to the company receiving approval from its senior secured lenders.

As previously reported, the company wants to extend the maturity of its $200 million of zero-coupon convertible bonds and $20,796,000 of 7.5% convertible bonds to Feb. 11, 2013 from Oct. 11, 2012.

Bondholders will vote on the extension at meetings on Oct. 10.

On Sept. 18, the company said it was working to arrange funds, including from asset sales, new debt, equity-linked financing and/or equity financing, and needed more time. Suzlon Energy plans to redeem the convertibles at the end of the extended period.

The final funding options that the company decides to complete may require approval from its senior secured lenders and its board of directors.

Earlier in the year, the holders agreed to extend the maturity of both bond series to July 27, 2012 from June 12, 2012.

Suzlon makes wind turbine generators and is based in Pune, India.

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