Adani Ports receives offers of $213 million for bond buyback; to accept $195 million offer

Adani Ports news: Adani Ports and Special Economic Zone Ltd informed exchanges on Thursday although it has received offers totalling about $213 million for its dollar bond buyback, it will only accept the $195 million that was previously declared.

In the last week of September, the company has started a tender offer to buy the outstanding 3.375% senior notes due 2024 for up to $195 million in cash. The company stated that the purpose of the tender offer is to partially prepay the company's impending debt maturities in its exchange filing in September.

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"According to the information provided by D.F. King Ltd, the information and tender agent for the Tender Offer, an aggregate principal amount of US$212,972,000 of the Notes had been validly tendered and not validly withdrawn pursuant to the Tender Offer as at the Early Tender Date.

Since the principal amount of Notes validly tendered and not validly withdrawn on or prior to the early tender date exceeded the maximum acceptance amount of US$195,000,000 in aggregate principal amount of the outstanding notes, the company will accept such notes for purchase subject to the proration factor of 87.5619%," the company said in an exchange filing on Thursday. 

The company announced in May 2023 that it will buy roughly 20% of the issued notes' principal amount for cash over the following four quarters, for a total purchase price of $130 million in cash. 30% of the issued notes' principal amount, or up to $195 million in aggregate principal, is what the company is buying in this second tranche for cash.

Also Read: Adani Ports to buy back $195 million notes due in 2024 in cash tender offer

Adani Ports share price today were trading flat at ₹816 apiece on BSE. On Tuesday, Adani Ports shares witnessed gains over 3% after falling over 5% as analysts indicated that even in the worst case, the impact of events in Israel would be low on Adani Ports & Special Economic Zone, which led to the upward trend of the Adani Ports stock price.

Adani Ports said in an exchange filing on Monday that it is closely watching the crisis in Israel and is ready with a business continuity plan.

"We are closely monitoring the action on ground which is concentrated in South Israel, whereas Haifa port is situated in the North. We have taken measures to ensure safety of our employees and all of them are safe. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality.

The overall contribution of Haifa in APSEZ’s numbers is relatively small at 3% of the total cargo volume. For the current financial year (Apr 23-Mar 24), we have guided for Haifa Cargo volumes range of 10-12 MMT and APSEZ’s total cargo volume guidance of 370-390 MMT. In the initial six months (Apr-Sep 23), APSEZ’s total cargo volume was about 203 MMT, of which the Haifa share is about 6 MMT. We stay confident of APSEZs business performance," the company said in its filing.

Also Read: Adani Ports share price rises 3% as brokerages expect up to 28% upside potential

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