The Shapoorji Pallonji group has proposed an improved deal for the bondholders of Goswami Infratech by agreeing to pay an additional Rs 400 crore, increasing the total payout to Rs 1,800 crore. In exchange, the group is seeking the bondholders’ approval to postpone the coupon payment on the debt from the original repayment date of May 26 to September 30, as per documents reviewed by Moneycontrol.
Last June, the Shapoorji Pallonji group raised Rs 14,300 crore for its entity, Goswami Infratech, through rupee-denominated zero-coupon non-convertible debentures (NCDs). Investors in these bonds include Cerberus Capital, Varde Partners, Canyon Capital, and Davidson Kempner, along with existing lenders Deutsche Bank, Edelweiss Special Opportunities Fund, and Ares SSG.
These NCDs included a Most Favoured Nation (MFN) clause, meaning that if any group companies of Shapoorji Pallonji raised debt at a higher interest rate compared to Goswami Infratech lenders post May 26, the Goswami lenders would also receive the higher rate. Currently, the bonds of Goswami Infratech are offered at a redemption premium of 18.75%.
Additionally, the Shapoorji Pallonji group is raising funds to repay debt associated with shares of Tata Sons held by Sterling Investments Corporation Private Limited (SIPL). However, the new debt raised for Sterling will not be sufficient to fully repay existing debts.
The group has already started paying 200 basis points higher interest to Goswami Infratech bondholders after failing to sell Gopalpur port by the end of 2023. This clause was triggered on January 1 of this year.
On March 26, Shapoorji Pallonji Group signed a deal with Adani Ports and Special Economic Zone (APSEZ) to sell its 56% stake in Gopalpur Port, along with a 39% stake in Orissa Stevedores.
Another potential covenant that might be triggered soon involves the listing of its affiliate company, Afcons Infrastructure. The group is expected to list Afcons and use the proceeds towards debt repayment by the end of June. Failure to do so will increase the interest rate payable to bondholders by another 200 basis points. Afcons has already filed a draft offer document for public listing with SEBI.
