Adani Ports and Special Economic Zone has commenced the purchase of a second tranche of $195 million in senior notes due 2024 as part of its plan to prepay short-term maturing debt and reduce debt.
The company said on the exchange that the senior notes, which have a face value of $1,000 each and a coupon rate of 3.375%, will be repurchased at a price of $975 each before the early tender date on October 11. The offer will be on October 26 maturity. Archive. Notes tendered after Oct. 11 will be purchased at $965 each.
Following the acquisition, it will have $325 million in notes outstanding. The purchase was funded from its cash reserves.
In May, the company purchased $130 million worth of notes and said it would repurchase about one-fifth of the principal amount in each of the next four quarters for a total of $650 million. The number of bonds currently issued represents approximately 30% of the principal amount of notes issued.
“The company may choose to accelerate or delay the program based on market conditions and further subject to terms, including pricing, that will be announced individually for each tranche,” the company said.
The company said the maximum amount accepted is $195 million and that it may increase or decrease the amount at its discretion.
The response to the May tender offer was overwhelming, with an offer worth $412,724 being made ahead of the early tender date, and bondholders rushing to redeem their bonds.
Adani Ports has more than $3 billion worth of debt maturing between FY24 and FY30, with the majority of the debt due to be repaid in FY25 and FY28.