Jain Irrigation Systems subsidiary issues $200M Senior Notes due 2022

JITBY signs agreement to strengthen the Company’s overall financial position and enable the Company to focus on growth.

Mar 18, 2021 09:03 IST India Infoline News Service

Jain-Irrigation
Jain International Trading BV (JITBV), a wholly-owned subsidiary of Jain Irrigation Systems Limited (JISL), had issued USD 200 million 7.125% Senior Notes due 2022 (Original Notes) pursuant to an indenture dated 1st February 2017 between JITBV as the issuer, and JISL as parent guarantor.

JITBV has announced that it has entered into a Restructuring Support Agreement (RSA) formalizing the terms for restructuring the Notes that will strengthen the Company’s overall financial position and enable the Company to focus on growth.

JITBV and an ad-hoc group of Holders of certain Original Notes, together with their respective advisors, have been engaged in constructive dialogues towards a restructuring of its indebtedness on the Original Notes over the past few months.

The Restructuring also involves providing the Company with certain amounts of new capital to tide over working capital requirements, remedy certain covenants with its secured lenders, refinance debt obligations and well as cash tender for the Original Notes.

In the interests of all parties involved in the Original Notes, JITBV strongly encourages holders of the Original Notes to consider and enter the RSA. 

The US$30 million New First Lien Facility shall benefit from a first lien security over certain assets and share pledge of some of the entities within the Group. The New First Lien Facility will be underwritten and backstopped by the members of the Ad-hoc group of Holders of certain Original Notes for an amount of USS$27.5 million. 
Jain Irrigation was currently trading at Rs21.75 per piece up by Rs0.55 or 2.59% from its previous closing of Rs21.20 per piece on the BSE, at around 9:35 AM

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