Azure Power Global to buy back some bonds
Azure Power Global, owned by Canada's CDPQ and OMERS Infrastructure, has received support from 99% of bondholders for its proposal to repurchase a portion of bonds issued by two of its units at their face value.
The company had on November 28 initiated a consent solicitation process to buy back bonds with a total value of $60 million issued by two special purpose vehicles: Azure Power Solar Energy and Azure Power Energy, as reported by ET. Proposal looked to amend certain terms for 2024 and 2026 notes.
Azure Power Solar Energy, which had issued $350 million of 5.65% senior notes due in December 2024, had offered to repurchase $40 million of the paper by March 2024.
Azure Power Energy had proposed to repurchase part of its $414 million, 3.575%, senior notes due in March 2026 in two tranches: $12 million by March 2024 and $8 million by August 2024. The consent deadline expired on December 7, 2023, with noteholders representing 99.13% and 99.30% for the 2024 and 2026 notes, respectively, providing their consent.
To implement proposed amendments, $6 in cash for each $1,000 principal amount of notes will be made to consenting noteholders by December 18.
Azure Power had faced concerns about covenant breaches on bonds and loans, after its delisting from NYSE for a delay in filing results is said to have led to a technical default. The company released its fiscal 2022 audited financial results on October 12, 2023.
CDPQ and OMERS jointly hold a 75% stake in Azure Power Global. The 3.575% bond is trading at 87.50 bid yield, reflecting a 9.16% yield, and the 5.65% bond is at 97.20 bid yield, indicating an 8.8% yield.
