Suzlon Energy obtains necessary consents for convertibles amendments

By Jennifer Chiou

New York, June 26 - Suzlon Energy Ltd. said it received the required consents after offering an incentive fee of 10% to holders of its $121,368,000 of zero-coupon convertible bonds due 2012 who consented to amendments to the securities.

The consent deadline was 5:30 a.m. ET on June 24, and a meeting of bondholders was held on June 25.

The incentive fee amounts to $1,869,862.50.

The company previously noted that 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 already noted that it would pay no more than a total of $3,153,053 in incentive fees.

In the consent solicitation, Suzlon was 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 was intended to give it greater financial flexibility for the future.

Suzlon previously said that existing holders would be able to participate in a new issue of convertibles that it would issue if the amendments are approved, at least 45% of the holders who waive 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 0% coupon, mature in 2014 and be denominated in dollars.

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

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

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