Jaiprakash Associates completes restructuring of $150 mn FCCBs

Debt-ridden Jaiprakash Associates has completed the exercise to exchange its USD 150 million foreign currency convertible bonds (FCCBs) due this year with those maturing in 2020-21.
Recently, the company's finance committee approved cashless exchange of existing FCCBs due in 2017 with those maturing in 2020-21. Earlier this month, the RBI had approved the proposal.
In a filing to the BSE today, Jaiprakash Associates informed that "the consent solicitation and the proposed exchange offer have been completed and ...upfront payments have been made".
The company had fixed November 28 as the effective date for restructuring.
Accordingly, the exchange bonds are expected to be listed on Singapore Exchange Securities Trading Ltd on November 30, the Jaypee Group's flagship firm added.

In June, Jaiprakash Associates had said that bondholders agreed to exchange outstanding existing FCCBs worth USD 150 million. The bonds were issued in September 2012 with maturity in 2017 and a coupon rate of 5.75 per cent.

As per the proposal, the bondholders agreed to exchange their current bonds with FCCBs worth USD 38.64 million bearing the same coupon rate with maturity in 2021 and amortising bonds worth USD 81.69 million with coupon rate of 4.76 per cent and maturity in 2020.
As many as 1,10,400 Series A bonds were to be issued having principal value of USD 350 each carrying a coupon rate of 5.75 per cent per annum with maturity in September 2021.

Moreover, the proposal was to issue 1,10,400 Series B bonds having principal value of USD 740 each at a coupon rate of 4.76 per cent per annum and maturity of September 2020. The company had to pay USD 27.6 million upfront.
Jaiprakash Associates, a diversified infrastructure company engaged in segments like engineering, construction and real estate development, cement manufacturing, hospitality and sports management, is selling its assets to repay debt.
Jaypee Group firm Jaypee Infratech has been taken over by a National Company Law Tribunal (NCLT)-appointed IRP (Insolvency Resolution Professional) for recovery of bad loans.
The group is facing huge protest from home buyers due to significant delays in delivery of projects.