Adani Ports and Special Economic Zone has started the second tranche of its purchase of senior notes worth $195 million due in 2024, as part of its program to prepay short-term maturing debt and reduce its liabilities.

The senior notes, each of which has a face value of $1,000 and coupon of 3.375 per cent, are being bought back at $975 each until the early tender date of October 11 and the offer will expire on October 26, the company said in an exchange filing. Notes tendered after October 11 will be purchased at $965 each.

After this purchase, it would have $325 million of notes outstanding. The funds for the purchase are coming out of its cash reserves.

Current tranche

In May the company had purchased $130 million worth of the notes and had also indicated buying back about a fifth of the principal amount in each of the next four quarters, the total amount being $650 million. The current tranche on offer represents about 30 per cent of the principal amount of the notes issued.

“The company may choose to either accelerate or defer this plan subject to market conditions, and further subject to the terms, including the pricing, to be separately announced for each of such tranches,” it said.

Acceptance amount

The maximum acceptance amount is up to $195 million, the company said, with the amount being increased or decreased at its discretion.

Response to the tender offer in May was overwhelming with offers worth $412.724 million being tendered by the early tender date, with bond holders rushing to redeem their holdings.

Adani Ports has over $3 billion worth of debt maturing over FY24 to FY30, with large chunks due for repayment in FY25 and FY28.

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