Suzlon Energy offers 10% consent fee for amendments to convertibles

New York, June 18 - Suzlon Energy Ltd. is offering an incentive fee of 10% to holders of its $121,368,000 outstanding principal amount of zero-coupon convertible bonds due 2012 who consent to amendments to the securities.

The consent deadline is 5:30 a.m. ET on June 24. A meeting of bondholders will be held on June 25.

However the consent fee will be paid on a maximum of 82.5% of the principal amount of bonds held by an individual investor.

In addition, Suzlon will pay no more than a total of $3,153,053 in incentive fees.

Existing holders will be able to participate in a new issue of convertibles that the company will issue if the amendments are approved, if at least 45% of the holders waiving the incentive fee request the issue, and holders of at least $20 million of the bonds request the issue.

If Suzlon goes ahead with the new convertibles, they will have a zero coupon, mature in 2014 and be denominated in dollars.

Up to $70 million will be issued, with an option to increase to $90 million.

In the consent solicitation, Suzlon is requesting the approval of amendments to change the bond covenants and of waivers of events of default or breaches of the bond conditions or trust deeds.

Suzlon said the solicitation is intended to give it greater financial flexibility for the future.

Ahmedabad, India-based Suzlon Energy is a wind power company.

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