Following the start of the Adani group company’s planned USD 130 million bond buyback, shares of Adani Ports and Special Economic Zone (Adani Ports) dominated trading on Monday. The company, which is led by Gautam Adani, intends to partially prepay near-term debt maturities in order to ease market concerns regarding the company’s cash condition.
Adani Ports anticipates that USD 520,000,000 in notes will still be outstanding when the tender offer is completed successfully. Following this tender offer, the Adani group plans to make a bid to buy roughly USD 130,000,000 of the outstanding notes for cash over the course of the following four quarters.
Adani Ports earlier stated in two filings to stock markets earlier today its finance committee has approved a tender offer to purchase for cash the outstanding 3.375 percent senior notes due 2024 for up to US$130,000,000 in aggregate principal amount.
The dealer manager agreement (“Dealer Manager Agreement”) to be entered into between the company and the dealer managers, as well as any other documents that might have to be executed in connection with the tender offer, were also approved by the committee, according to a statement from Adani Ports.
The statement was made in a later press release stating “Adani Ports and Special Economic Zone Limited Commences Cash Tender Offer for up to USD 130,000,000 in aggregate principal amount of the Outstanding 3.375 per cent Senior Notes due 2024”.