Dollar bonds of Adani Ports and SEZ were among the top gainers last week as the company launched a tender offer to buyback up to $130mn of its outstanding $650mn 3.375% bonds due July 2024. The company said it was part of a liability management exercise and will be funded from cash reserves. The company said in a statement, “The purpose of the tender offer is to partly prepay the company’s near-term debt maturities and to convey the comfortable liquidity position of the company”.
Bondholders tendering their bonds before the early deadline of May 8 will receive an early tender premium of $15, included in the total cash consideration of $970 per $1,000 principal. Those tendering their bonds beyond this date but before the final deadline of May 22 will receive $955 per $1,000 in principal. Further, Adani Ports added that it is planning buybacks of about $130mn in each of the next four quarters. Its 3.375% 2024s are trading at 95.6 cents on the dollar, yielding 7.1%.
The buyback confirmation comes just days after the company said that it was looking to buy back bonds denominated in INR or USD. Adani Ports’ dollar bonds were up over 3-5% last week led by its 4% 2027s that were up 4.7% to trade at 83.9, yielding 8.58%.